NPS, then this medium is also a good option for him. For your information, let us know that the National Pension System was first started by the Central Government in January 2004 for Government Employees. However, in 2009 the government opened up every citizen of the country to invest in NPS. Which is now an sponsored pension scheme of the government.
Interestingly, NPS has proved to be a safe investment tool. Due to which the number of account openers in NPS is continuously increasing. Not only this, many PSUs are also putting their pension funds in it. Currently around 7,900 corporates have accepted the NPS system, which has a fund of Rs 50,000 crore with 10 lakh contributors. According to the National Pension System, pension is made after 60 years. At the same time, this pension depends on the amount you deposit every month.
For your information, let us know that in the new pension system i.e. NPS and Atal Pension Yojana, the total Asset has reached 4.17 lakh crore by 31 March 2020. At the same time, by this date the number of pension-scheme beneficiaries has increased to about 3.45 crores.
The other is auto mode – in which the investor has to make choices. In this mode, 8 fund managers handle the investor money and keep changing the equity and debt according to the market. Apart from this, there is also an exemption under Section 80CCD of income tax for investing in NPS.
This is how you can open an account in NPS
The applicant does not have to submit any documents for KYC to open an account in the National Pension System. Not only this, an account can also be opened in online mode with Aadhaar. Also, PFRDA has allowed E-NPS and Point of Presence centers to open NPS account through offline basis.