How to invest in NPS One can also open the account online
The National Pension System is a voluntary defined contribution scheme, which allows subscribers to accumulate funds for retirement and aims to provide market-based returns over the long term. Here’s how to join the NPS.Prerequisites
Any citizen of India between 18 and 70 years of age can open the NPS account.
Modes of opening
The account can be opened by visiting any point of presence service provider (PoP-SP). These can be banks, financial institutions, or other entities. The list of PoPs is available on the official NPS website. One can also open the account online.
Physical application
One needs to fill up the permament retirement account number (PRAN) application form, along with photograph, signature and scheme preference details, and submit KYC documentation to PoP-SP. PRAN is sent to the correspondence address. One can then can make the first contribution (minimum of Rs.500) to begin investment.
Online application
One needs to visit the eNPS website (https://enps.nsdl. com) using PAN and bank details. Fill the necessary details (PAN, Aadhaar, etc.) in the online form and upload KYC verification documents, such as the scanned copy of Aadhaar and photo. KYC needs to be carried out using the Aadhaar OTP authentication. After registration, one will receive PRAN on the registered e-mail ID.
Investment choice
There are two investment options: auto or active choice. In ‘auto’ choice, the investments are managed on the basis of age, while ‘active’ choice allows one to decide the percentage allocation among asset classes.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
