NPS

( NATIONAL PENSION
SYSTEM )
 Points
NPS Asset Class

Investment Choice & NPS Asset Allocation

Types of NPS Accounts

Fund manager list

Government & Private sector funds

 3

INTRODUCTION

The National Pension System (NPS), earlier known as the New Pension Scheme, is a
pension system open to all citizens of India. The NPS invests the contributions of its
subscribers into various market-linked instruments such as equities and debts and the final
pension amount depends on the performance of these investments. It has an applicable
interest rate of 9% to 12% on contributions made.
Any Indian citizen in the age group of 18-60 can open an NPS account. NPS is administered
and regulated by the Pension Fund Regulatory Authority of India (PFRDA). The NPS matures
at the age of 60 but can be extended until the age of 70. 
NPS Asset Classes

Class Investment Asset

E Equity
C Corporate Bonds
G Government Bonds
Alternative Assets like REITs &
A
InVITs
Investment Choice & NPS Asset
Allocation

 Active Choice = The NPS subscriber needs to

provide Pension Fund Managers (PFM), asset
allocation matrix and the percentage allocation to be
done to each of the asset classes of NPS. 

 Auto Choice = In Auto Choice, the lifecycle fund that

you have chosen does the asset allocation process
for you (maximum equity allocation is again 75%).
The fund also automatically rebalances your asset
allocation as you get older towards less equity and
more debt.
 Types of NPS Accounts

Tier 1 :- Premature withdrawal not allowed. Tax benefits

up to Rs 2 lakh per annum.

Tier 2 :- Funds can be withdrawal any time but lock – in

of 3 year for claiming tax benefits.
 FUND MANAGER LIST WHO
MANAGE THE NPS FUND

•Birla Sun Life Pension Fund Ltd = Sashi Krishnan

•HDFC Pension Management Co. Ltd = Sriram lyer
•ICICI Prudential Pension Fund Management Ltd = Shiladitya Dasgupta
•Kotak Mahindra Pension Funds Ltd = Devender Singhal
•LIC Pension Fund Ltd = Pradeep Bhat
•Reliance Capital Pension Fund Ltd = Gurbir Chopra
•SBI Pension Fund Pvt. Ltd = Rima Joshi
•UTI Retirement Solutions Ltd = Pratik Dharmshi
GOVERNMENT & PRIVATE SECTOR
FUNDS
• Pension Funds (PFs) for Government Sector
• SBI Pension Funds Pvt. Ltd.
• LIC Pension Fund Ltd.
• UTI Retirement Solutions Ltd.

• Pension Funds (PFs) for Other than Government Sector

• HDFC Pension Management Co. Ltd.

• ICICI Prudential Pension Fund Management Co. Ltd
• Kotak Mahindra Pension Fund Ltd.
• Aditya Birla Sunlife Pension Management Ltd.
• Tata Pension Management Ltd.
• Max Life Pension Fund Management Ltd.
• Axis Pension Fund Management Ltd.
•Age: You must be at least 18 years old to open an NPS account.
•Eligibility: You must be an Indian citizen to open an NPS
account.
•Contributions: You can contribute a minimum of Rs. 500 per
month to the NPS. There is no maximum contribution limit.
•Investment options: The NPS offers a variety of investment
options, including equity, debt, and hybrid funds. You can choose
AVERAGE ROI
10

1 year = 10.29%
3 years = 11.56%
5 years = 10.15%
Avg ROI is 9 % to 11%
THANK YOU