Back to Blog
We all have different goals in life, be it personal, professional, or financial. According to these goals, we invest in different investment schemes and assets that match our investment strategy and risk tolerance. In this blog, we will discuss the most compelling reasons why you should consider investing in the National Pension System.
The National Pension System or NPS is a government-regulated pension scheme in India that offers a range of investment options to help individuals build a retirement corpus. It offers you market-linked returns in order to beat inflation and also provides you with tax benefits on your investment. There are way many more benefits that you can enjoy if you open an NPS account online. Let’s check them out below.
Benefits of National Pension System (NPS)
- Regulated by PFRDA: The Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body of NPS. It makes sure that transparency and security play a key part in your eNPS registration and process.
- Flexibility: NPS offers flexibility in terms of investment choices. After NPS account opening, you can choose between equity, corporate bonds, and government securities based on your risk appetite and financial objectives. You can also contribute to NPS at any time and increase or decrease the amount of subscriptions as per your requirement as long as you are maintaining the minimum required contribution requirements for the financial year.
- Tax Benefits: One of the primary reasons for you to open an NPS account online is its tax benefits. Contributions of up to ₹1.5 lakh are eligible for tax deduction under Section 80C, and an additional ₹50,000 under Section 80CCD(1B) of the Income Tax Act.
- Low Cost: The fund management charges of NPS are minimal as compared to other investment avenues. This means that most of your investment remains invested, which helps in maximizing returns.
- Auto Choice Option: In your NPS registration online, you can choose the ‘Auto Choice’ option. This option aims to automatically adjust the asset allocation based on the subscriber’s age. This feature will help you in managing risk effectively over time.
- Portability: If you have an NPS registration, you can operate your NPS account from anywhere in the country, irrespective of employment changes or location shifts. This means you do not have to generate a new PRAN for new jobs or new requirements, the existing PRAN will be mapped everywhere and be continued to be used.
- Professional Fund Management: Your NPS account has the added benefit of being managed by professional Pension Fund Managers (PFMs), for expert management of your investments.
- Long-term Wealth Creation: If you regularly contribute to NPS for the long term in NPS, you can explore the power of compounding to build a substantial corpus for your post-retirement years.
How to Open an NPS Account Online?
If you want an NPS account opening digitally, you can register through the website of KFin Technologies. You just need to follow these simple steps for your NPS online registration.
- Visit our website at nps.kfintech.com
- Select the ‘Join NPS’ option which will direct you to a new page.
- You need to fill in the required information:
- Your full name
- Date of birth
- Mobile number
- PAN number
- Email ID
- Application type
- Resident type
- Agree to the terms and conditions
- Select ‘Create an account’ which will finally redirect you to the NPS page.
Conclusion
So you see, if you want to open an NPS account online, it will be a good investment option for you if you are aiming for financial freedom after your retirement and also want to save tax. Start investing in NPS today to get the best out of the above-mentioned benefits.
