While the Life Insurance Corporation (LIC) general schemes provide life coverage and other facilities along with profits, LIC is also associated with the government’s pension scheme scheme. In the National Pension System (NPS), a lot of earning can be done through LIC’s pension fund. Explain that Tier-II NPS accounts have given double digit returns during the last 3 years. LIC Pension Fund has been at the top of them. At the same time, HDFC (HDFC) has been the pension fund manager at number two. Learn about it in detail.
Almost all National Pension System (NPS) Tier-II in government securities funds have given double digit returns in 3 years. During this period, 7 pension fund managers have received annual returns ranging from 11.01 per cent to 13.5 per cent. At the same time, the benchmark CCIL Sovereign Bond and the 10-year Guild Mutual Fund have given a return of 10.78 per cent.
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LIC Pension Fund ranks first in the Tier-II segment. It has given a return of 13.5% in 3 years. Information about this has been obtained from the data of Value Research. Following the return of LIC is the return of HDFC Pension Fund. HDFC Pension Fund has a return of 11.7%.
LIC Pension Fund has also given the highest benefit in the 5-year return period. LIC Pension Fund has given a return of 11.88 per cent in this period. In this way, it is ahead of all NPS funds and mutual funds in terms of returns.
Unlike the retirement account NPS Tier-1, which matures at the age of 60, NPS Tier-2 offers a variety of facilities. This is an investment account, but you can withdraw money from it according to your need.
Except government employees, there is no tax benefit under Section 80C of Income Tax Act on Tier-2 account. The low expense ratio of a basis point makes it attractive to investors.
This will remain in force even after the election of new pension fund managers by the Pension Fund Regulatory and Development Authority (PFRDA). NPS will remain the cheapest option compared to mutual funds and other financial instruments, with a maximum proposed investment management fee of 0.09 per cent for equity schemes (Equity Schemes) and an intermediary charge of 0.03 per cent.
One has to open a Tier-1 retirement account to invest in a Tier-2 account. A new account can be opened with a minimum amount of Rs 1,000. Contribution of at least 250 rupees will have to be made in this. This is a voluntary account. It is not necessary to invest every single year. For this, one of the 7 pension fund managers can be selected.
The same Tier-2 pension manager should be selected for the Tier-1 account. Investment rules will be similar to Tier-1 account. Subscribers under 50 will get 75% exposure in the equity asset class. Alternatively, Auto Choice Investment option can be selected to manage your capital in it.
