Pension Fund Regulatory Development Authority (PFRDA) has been pursuing the development and operationalization of online transaction facilities for the prospective as well as existing subscribers of NPS (National Pension System). Towards this end, an online platform for registration of subscribers and receipt of contribution under eNPS through NPS Trust has been developed.
Through this platform, a prospective subscriber can register for NPS and contribute to his/her Permanent Retirement Account (PRAN). If you are an existing NPS subscriber and have an NPS account, you can make contributions through eNPS directly.
What is NPS?
The National Pension System Trust (NPS Trust) was established by PFRDA on 27th February, 2008. The NPS Trust has been set up and constituted for taking care of the assets and funds under the National Pension System (NPS). Individual NPS subscribers are considered as the beneficiaries of the NPS Trust.
The Government of India (GOI) rolled out the NPS for all citizens of India from May 1, 2009 and corporate sector from December, 2011.
Any individual whether employed with private sector, self employed or professional can now avail of pension benefits and plan his or her retirement by enrolling in this scheme.
The person (employee/citizen) who joins the NPS will be known as “Subscriber” in the NPS. Under the NPS, each Subscriber will open an account with Central Record keeping Agency (CRA). This account is identified through unique Permanent Retirement Account Number (PRAN).
Under NPS, two types of account are available for subscription i.e. Tier I & Tier II;
- Tier I account – where subscribers contribute his / her savings (may include employers’ contribution in case of Corporate sector) for retirement into a non- withdrawable account. However, pre-mature withdrawals are allowed before attaining 60 years only if the subscriber completes 15 years of service. The subscriber can also withdraw 50% of contribution if he/she has minimum 25 years of service.
- Tier II account – This is a voluntary savings account from which subscribers are free to withdraw their savings whenever he/she wishes. It is like a Savings Bank account. The facility of Tier II account was made available from December 01, 2009 to All Citizens of India including Govt. employees and Corporate sector. It is mandatory to have an active Tier I account for opening of a Tier II account.
Structure wise NPS account is similar to unit linked investment plan (ULIP) or unit-linked pension plan (ULPP). There will be different kind of fund options with different exposure to equity instruments , corporate debt, fixed income instruments and government securities.
The Centre made NPS scheme mandatory for all the employees who joined the service on or after January 1, 2004. It has since been adopted by most state governments also. Currently, NPS has more than 1.13 Crore subscribers with total Asset under Management (AUM) of more than Rs. 1.08 lakh crore.
How to invest in NPS online through eNPS?
Contributions to NPS scheme through online mode are possible only through CAMS or ICICIdirect. Now, with the launch of eNPS, the subscribers of NPS can invest in NPS scheme directly online. One can even register for NPS and generate PRA online.
Below is the procedure on ‘how to open, register & contribute to your NPS Account online’ through eNPS;
- Visit e NPS portal.
- Click on ‘Registration’ if you are a prospective NPS investor. If you are an existing NPS subscriber, click on ‘Contribution’ option.
- If you are registering for the first time, you have to provide details like; residential status, PAN & Account type (tier-I / tier II). You also have to select the bank in which you have a savings / current account. Your NPS account will be linked to this bank account.
- (A onetime fee of up to a maximum of Rs. 100 (plus applicable taxes) will be debited from your Bank account by the Bank as KYC authentication charges. Presently, ten banks viz. Allahabad Bank, Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, South Indian Bank, State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, Tamilnadu Mercantile Bank and United Bank of India have provided the facility of online KYC verification. PFRDA has advised all other Bank POPs to join the eNPS platform and provide online verification of KYC for the customers of their Banks willing to open NPS account online. )
- In the next screen, you have to provide – personal details, contact information, your bank account details, your photo & signature (scanned copies) & payment details.
- Your PAN number will then be validated online with the Income Tax dept. If PAN records matches with the information provided during NPS registration, you will get PAN Details confirmation message.
- You also have to choose ‘Pension Fund Manager’ & ‘investment option’ (auto / active) under ‘scheme & nomination’ menu. (ICICI, HDFC, SBI, Kotak, UTI, LIC & Reliance are the fund managers. ICICI & SBI fund managers are considered to be the best ones.)
- An initial contribution is collected at the time of opening of new NPS account through your Debit / Credit card or Internet Banking. This contribution is a minimum of Rs 500 for Tier 1 and for Tier-II it is a minimum of Rs. 1000.
- After successful payment of initial contribution, a Permanent Retirement Account Number (PRAN) is allotted to you. The PRAN kit containing a PRAN card, IPIN/TPIN, subscribed master report, scheme information booklet along with a welcome letter will be sent to your registered address.
- The details submitted by the subscriber will be sent through CRA system to the selected Bank for KYC verification. After verification of KYC by the Bank, the PRAN will become active and operational.
- After completing your online registration, you have to take print of the pre-filled NPS online application form, paste your photograph and affix your signature. You have to send the application form to the below address within 90 days from the date of allotment of PRAN number;
Central Record keeping Agency (eNPS)
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013
If you are an existing NPS subscriber, you can click on ‘Contribution’ option on eNPS home page. You just have to provide your PRAN number & Date of birth details and get an OTP (one time password) for authentication purposes. You can then make contributions using your debit/ credit card or through internet banking.
Latest update (02-June-2017) : In eNPS, along with SBI ePay, Bill Desk has been integrated as the second Payment Gateway Service Provider. This will help the Subscriber to make payment through any service provider as per his/her choice by selecting the available payment options.
Is NPS a good investment option for accumulating your Retirement corpus?
If it is mandatory for you to contribute to NPS then you do not have any choice but to contribute. If you want to make voluntary contributions then I believe that NPS is not a great investment avenue.
Retirement planning is a long-term goal, so when we are investing for a longer period, I prefer to invest in a simple, flexible, easy to understand, tax efficient & highly liquid investment option.
Though cost structure wise NPS is beneficial, there are certain disadvantages with NPS scheme;
- Equity exposure is capped at 50% & the retirement age is fixed as 60 years. Why should you restrict your investments in equities to just 50%?
- Terms & conditions: A lot of rules & limits are applicable for pre-mature withdrawals, withdrawals at retirement & on buying of annuity products. Buying of annuity product is a must (The quantum of investment in Annuity product depends on WHEN you choose exit from the NPS account).
- The NPS subscriber can get income tax benefits under Section 80CCD & 80CCD (1b) on the contributions, but the maturity proceeds are taxed when exiting the scheme. So, NPS falls under E-E-T category (exempt on contributions made, exempt on accumulation, taxed on maturity) (Also, the contribution to Tier-I account is only eligible for tax benefits) (Budget 2016-17 has made a proposal to make 40% of withdrawals at the time of retirement as tax-free. The remaining 60% of corpus has to be used to buy an annuity product)
Equity oriented mutual funds or ELSS funds plus PPF (Public Provident Fund) can be a better option for a long term goal like RETIREMENT. Even a simple SIP in an equity oriented balanced fund (wherein the equity exposure can be minimum 65%) can be a better choice.
If you do not have the expertise to invest in equity mutual funds, can not actively manage your investment portfolio and are happy with a defined portfolio of NPS, investing in NPS can be a better option than investing in ULIPs / ULPPs for retirement.
Talking about eNPS facility, it is expected that the subscriber will have multiple advantages like seamless on boarding experience where he/ need not visit a Point of Presence and can register from anywhere through an internet connection, contribution with minimum cost of transaction and reduction in errors resulting from various manual activities.
Latest News (17-June-2016) : Non-Resident Indians (NRIs) can now open National Pension System – NPS accounts online through eNPS portal, if they have Aadhaar Card or PAN card. NRIs can make contributions on repatriable or non-repatriable basis through their NRE/FCNR/NRO accounts. If its on a non-repatriable basis then at the time of maturity or during partial withdrawals. the funds would be deposited in their NRO accounts only. (Source : Finance ministry website)
Kindly share your views on NPS scheme? Will eNPS online facility popularize NPS scheme? Kindly share your comments.
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net)
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Dear Srikanth,
I had opened my account in eNPS on Feb 2020 and then I invest 50000.
That time I had updated my rental address, Now I want to update my permanent address. I did not find an option in e portal for update home address.
Please help me on this.
Dear Srikanth,
I made investment of NPS extra 50000 in Tier 1 through e-NPS on 31 July 2020 through eNPS portal. The eNPS receipt shows transaction is successful. but Units credited on my NPS account on 4th Aug. Can I use Online payment receipt for tax exemption for the financial year 2019-20?
Dear Ananda Rao,
The CBDT circular says –
“any provisions of Chapter VI-A under the heading “B.- Deductions in respect of certain payments”
thereof, referred to in item (I) of sub-clause (i) of sub-section (1) of section 3 of the Ordinance, the end
date in respect of the time limit for the completion or compliance and the end date for making the said
completion or compliance, shall be the 30th day of July, 2020 and the 31st day of July, 2020 respectively”
So, the its 30-july-2020. Suggest you to check with any CA as well.
Hi All,
Is there solution /fix to come out from this issue
Registration against this Acknowledgement Id is pending for confirmation from payment Gateway.Please try again after sometime.
Kindly help me..
Thanks
Dear bubaias ..Kindly contact the concerned Service Provider..
how to know your service provider.. I am also getting similar error
Dear Atul..If you are investing in NPS through say ICICIdirect then you can contact them for such payment related issues..
I am also facing same issue. Does your problem gets resolved ?
thanks sir
Hi,
Thank you so much for this article. It helped me a lot to complete my registration.
However, can you please help me to know, how I can change the mode of my investment (eg. conservative,aggressive,moderate) after registration?
Please Note: I have selected investment option as Auto and completed registration process and form is yet to send to the concerned authority.
I hope I have well described my situation. Please help.
Dear Kumar,
Personally, I have not created login with eNPS portal, so cant suggest you anything on this. Kindly contact eNPS customer care.
Hi sreekanth,
i successfully registrated through online and my pran number also got alloted. As per 15 Dec 16 Circular When i try to e sign the and complete process. But im unable to E sign Subsciber Registration form . please help. Thank you
After having the Pran generated with the help of KYC process. I want to know that how many times i can contribute through online, Can i do it multiple times in a year depends upon on the availability of money at user side.
Also Need to know as i am having salary account in some other private banks so can i do the payment through private bank directly or i have to transfer the funds first to SBI account and then made the payment to NPS
Dear Anshul,
I believe that multiple contributions are allowed.
I am not very sure about the updated list of banks that are available now. Kindly check with the customer care.
Online contribution from bank account via SBI epay debited in bank account but not received at NPS CRA. What is the procedure for the reversal?
I m a Delhi govt employee.recently joined in October. Can I generate pran generally meant for govt employee
I am central govt empolyee I already have nps tier -1 account what is tier2 account how much I will get Intrest and I receive msg NPS 50000 additional tax means I yearly how much contribute my account..
Dear srinivasarao ..suggest you to kindly go through this article and revert to me with your viewpoint : Why NPS is not a great investment option?
Dear Sreekanth,
We have many question regarding eNPS and contribution , but if you can tell something about the exit of NPS would be much better for some of us.
1.If i accumulate a corpus i can withdrwal 60 % of and for rest 40 % i have to buy annuity (This point is not clear )
2.Does NPS provide any pension after 60 year
Please write something regarding the exit point after contribution for 60 Year what all a common person going to get benefit out of it
eNPS and SBIepay wont work many day. You are lucky if you cab make contribution through eNPS site.
Dear Sreekanth,
I recently opened my NPS account with ICICI bank as POP by paying an initial amount. Now I want to contribute on monthly basis through net banking. Can I use some bill payment option in my bank portal to make this payment on monthly basis, than every time going through the NSDL contribution online.
Pls advise…..
Dear Anup ..Kindly check with your banker about this facility.
Hello, What is the age limit for opening an account in NPS? My mother is house wife and is 52 years old, is she eligible to open an account? Thanks
Dear Kamaljit,
Subscriber should be between 18 – 60 years of age as on the date of submission of her application. So, she can open NPS a/c.
I have applied for eNPS online today via eNPS website.
I sucessfully submitted the online application form and made the initial contribution sucessfully.
I got the Permanent Retirement Account Number (PRAN) alloted.
Now I will have to send the hardcopy of the application form to Central Recordkeeping Agency (eNPS), Mumbai.
My question is, how to send the application form? Can I send it via normal post or registered post or private courier? I’m from Bangalore.
Not sure which mode they accept to receive the application form.
Kindly help if anyone knows the procedure?
Dear Pragadees,
Personally I do not have account created with NPS.
But when in doubt, I suggest you to send a SPEED POST so that any one at the destination place can receive the mail. Also, you can have a document reference num if you book a speed post to track the status of your mail.
Hi,I made a contribution to NPS on 31st March.The units got credited on 6th of April. This contribution would be considered for FY15-16 tax benefit?I got transaction confirmation message on 31st March
Dear Kundan..
Tricky question. I am not sure about this one. What is the transaction date that is mentioned in the statement?
On the CRA website,credit date mentioned is 6th April.But, I have online payment receipt for 31st March.
Dear Kundan,
I think we can go by ‘Date of deposit or contribution’ (31st March) as this is an e-transfer.
Same question . I have submitted on 31st march but got reflected on 4th march . In which financial year we can claim that amount .Transaction date on 31st March
Dear abhi..If the transaction date in the statement is 4th april, then you can claim tax benefit for FY 2017-18.
Hi Kundan,
I have contributed amounts for my tier-I and tier-II account using https://enps.nsdl.com/eNPS/InitialExistingUser.html website on 29th May, 2016 and also I have the payment receipt for that, but on CRA website amounts are not credited till now.
As you already contributed, so could you please guide me.. how many days required to reflect the same amount on CRA website.
Hi Sreekanth , do you know how to withdraw money from tire-2 a/c those are registered through eNPS ? Please help me in this regard.
Dear Jagu..I am not sure about this. You may kindly contact the customer care of eNPS.
Dear Mr. Shreekanth,
I applied and opened an NPS account online, it was nice experience with AADHAR CARD data to get account opened in few minutes.
Online PRAN generation was done even before getting PRAN card by post later.
I would like to share with ReLakhs viewers, the following link form Value research, which will be useful to understand performance and NAVs of vaious fund managers and asset classes for both the tiers
https://goo.gl/FYiMhk
Dear Paresh..Thank you for sharing your experience and also for sharing the informative link.
Yesterday i.e. on 30.03.2016 I opened an eNPS account and initially I subscribed Rs 1000/-. But subsequent subscriptions are not allowed. Is there any restriction on number of subscriptions per month?
Dear SUBBA Rao..If that is the case then there won’t be any real purpose with this online facility. So, kindly contact eNPs portal customer care and find out about this.
Hi,
i recently open the nps account online, however when i try to contribute i did not find tier 1 option.
it shows me only tier 2 and voluntary account, does it mean voluntary and tier 1 are same.
Dear Devesh ..I believe that both options should be available as provided in one of the screen-shots. Suggest you to contact eNPS customer care (or) email your query to ; enps@nsdl.co.in
Thanks for such a quick response.
you have not provided the screen shot for contribution, i tried sending them mail but it got bounced due to full mailbox at their end, i also tried calling them on 022 – 4090 4242 but no response on the phone.
i don’t know what they mean by voluntary in tier type .
Hi,
I had tried to open an eNPS account yesterday and deposited Rs. 5000 online but no receipt/PRAN generated. Amount had been deducted from my account.
I had checked today but no solution found. Then I clicked on the link “complete pending registration” and made an initial contribution again for Rs. 1000/- today. This time PRAN and receipt both got generated.
How can i check the status of Rs. 5000/- deposited yesterday.
Also, I want to depsoit subsequent contribution but am not able to bcoz the system is showing the PAN and DOB as incorrect details.
Plz guide as nobody in eNPS NSDL is picking up the phone.
Dear vivek..Kindly check with your banker too..
Is it possible to track my savings in NPS scheme if i am investing in either Equity/Bond options so that it helps me to know how much is my corpus and plan accordingly
Dear Gowtham..I don’t have answer to your query as of now..Will try to gather info on this and get back to you.
Hi
I have applied for eNPS account online and got my PRAN generated. I have used my PAN card & Bank details for the authentication. I want to know whether how will the KYC happen from Bank?? Do I need to visit the branch or it will happen automatically . Do we get any sms or mail when the KYC request is sent to BANK. Totally confused…Can somebody help who has opened an eNPS account through PAN Card.
Dear Manjeet,
It should happen automatically. Once you submit the details, they are cross-verified with the KYC details available with your bank. After verification of KYC by the Bank, the PRAN will become active and operational. So, if your PRAN is active that means KYC details are ok.
Thanks a ton Shreekanth for your reply.How to ascertain that my PRAN is active.
Why eNPS not accepting contributions after the age of 60? I understand that I can hold and contribute to NPS account till age of 70. I deposited a cheque through my broker (NPS service provider). The cheque was cleared about 2 weeks back but transaction is still not reflected in account statement. Why?
Dear Ajai,
I believe that after attaining 60 years of age, you will not be permitted to make further contributions to the NPS accounts.
However, one can defer the withdrawal of the eligible lump sum amount payable under NPS till the age of 70 years.
No, it is not correct. I have confirmed it with NPS regulators. The following is from FAQs of HDFC (http://www.hdfcsec.com/data/docs/NPS%20FAQ.pdf):
Is there any maximum age limit for making further contribution to NPS Tier I Account?
Yes. You can make contribution in your NPS accounts anytime between the 18 to 60 years of age.
After attaining 60 years of age, you have an option to continue investing in NPS up to the age of 70 years.
Dear Ajai,
Kindly go through this PFRDA link…. (Kindly refer to page no 1).
I think PFRDA has not corrected its web-site. It must be more than six month old. I had received a call from eNPS Mumbai saying that they have not yet implemented it in eNPS but I can deposit the money through cheque through my POP.
Dear Ajai,
Ok. Thank you for confirming this and sharing the update.
So, private sector individuals can contribute to NPS up to 70 years of age (as of now through offline method), am I correct?
I think so. That’s what I gathered from press release and I thought since you are replying to the questions relating to NPS, you must be in a better position to tell me. BTW, I received following communication from CRA:
Details of Resolution: Dear Subscriber, we wish to inform you that currently there is no provision to contribute through eNPS portal after the age of 60 yrs. Further, you may contribute in your PRAN via offline mode through any Point of Presence Service Provider (POP-SP) the till the age of 70 yrs. Prior to this, you are requested to forward a request to CRA for confirmation of contribution after the age of 60 yrs to the POP-SP of your choice till the age of 70 yrs.We hope this clarifies the matter and thank you for being our valuable subscriber.
Dear Ajai..I was not aware of this provision. Thank you again for sharing the inputs. Keep visiting 🙂
Shishu lon chahiye sir
Dear Imran..Kindly go through this article : How to apply for loan under MUDRA Scheme?
Hi Srikanth,
I am at present 59 years old. If I invest in eNPS am I eligible for partial withdrawal on retirement at 60. I am employed in PSU. Kindly clarify.
R.Soundrarajan
Dear Soundarajan..May I know why you would like to invest in NPS for just 1 year?
Dear Sreekanth,
I am a Central Govt. employee. I opened an online eNPS account using the all citizen model. I contributed Rs. 500 and got the PRAN. Then I went to my SBH net banking account and registered my PRAN under NPS contribution linke. Then I clicked the contribution button and got the question: do you belong to the organised sector or unorganised sector? I replied organised. I got the message: As per PFRDA directive you are allowed to contribute only to the TIER-II account in the online mode.
Please explain what this means.
Dear Bhagwan..May be that’s the restriction they have put in online mode.
(Tier 1 Account is mandatory for all central government employees)
Hi Sri,
I am contributing rs 960 per month through atal pension yojna scheme. can I open one more pension account through eNPS. I feel this is good compared to atal pension yojna.
thanks,
Dheena
Hi Sreekanth,
At the time of Payment, Some how SBI Gateway hanged and Now, when i go to complete the pending registration. I am getting the below statement.
“Registration against this Acknowledgement Id is pending for confirmation from payment Gateway.Please try again after sometime”. I am facing this issue since long time. I tried to get the solution from all the places including nsdl/eNPS help.
Do you have any idea on this. Please suggest. It is critical for me as Year end closing is near.
Thanks & Regards,
Jitendra Shukla
Dear Jitendra..As this is an issue with SBI’s payment gateway, suggest you to kindly contact SBI customer care.
Thank you for your suggestion. Will let you know once done.
Dear Jeetendra Shukla, I had the same problem on 2/3/16. I phoned to NSDL customer care, sent emails to them as well as SBI e-pay, but to no avail. I contacted some other users who had the same problem . One of them said that the bottleneck clears after a wait of five working days. So I patiently kept checking the website every day. Yesterday, 9/3/16, I found the problem had miraculously vanished. I completed the process and got the PRAN immediately by SMS. So you must cool your heels for a week and not make the same mistake again.
🙂 Thank you. Mr. Bhagwan Murthy Says.
Hi
M the new account holder with eNPS. My question is that can i contribute my PRAN account Monthly basis.for example this month i contribute 1000/- next month contribute 500/- like that.
Dear Kunal..Yes, you may do so. The contribution is a minimum of Rs 500 for Tier 1 and for Tier-II it is a minimum of Rs. 1000.
Persons existing under NPS cannot seem bscribe for APY. APY is for non tax paying persons
Dear Punit..As far as I am aware of, one can subscribe to both.
Wrong. One of the prerequisite for APY should not b a part of any othe pension scheme. APY involves guaranteed return
Dear sudhakar ..Could you please share any link(s) or source justifying your view point. Will surely update the post if this is correct information.
I am having fully 80c and home loan to save tax, kindly let me know do we have any other tax benefit schemes to save more tax apart from Medical Insurance.
Kesi
Dear Sangeetha,
Kindly read this article : Income tax deductions list for AY 2016-17.
Dear Srikanth,
Thank you for providing valuable Information reg this eNPS.
Kindly give clarification for the below mentioned doubt.
I’m a regular NPS Tier 1 account subsciber with monthly subscription of 5000, total yearly value is 5000*12 =60,000.
My question of doubt is out of this regular value can I show 50,000 under 80CCD(1B) and remaining 10, 000 under 80 C to avail the benifit of additional Tax benifit under NPS. Is this acceptable.
Or
Should I have to contribute another 50,000 in order to avail this additional benifit under 80CCD(1B).
Thank You.
Dear Nagesh..I believe that it is not allowed. Rs 50k is over & above the Rs 1.5 L limit. You need to make additional investment to claim it under section 80CCD(1b).
Dear srikanth,
Thanks for ur prompt reply. I have read in another blogs that the additional benifit can be better claimed as I have asked you. May be this information might help many of us.
Can u please share me the reference from the government like any GO or any other order where this has been stated.
Thank you
Dear Nagesh..Kindly go through this link..
PLEASE SEND DETAILS OF NPS AND BENIFITS AND RETURNS. THANK YOU
Hi Sreekanth,
Thanks for this informative blog. It releally help me a lot regarding mutual fund understanding.
I have a basic query regarding my investment planning.
I am a salaried person. I can save arround 3 to 3.50 lakhs per year. I have a plan to buy a flat after exact 5 years. So, after 5 years I will need around 15 lakhs for down payment & flat related process.
So, can you pls suggest how I should plan so that will get that much money? As, I am salaried person, so I am planning to invest 1.20 lakhs in Axis ELSS fund. Apart from that investment where should I invest so that I will achieve my goal after 5 years.
Dear Abhijit,
Axis fund is a good one, but do note that it is an equity oriented product and hence the returns can be very volatile.
The units will have a lock-in period of 3 years. So, if you continue these investments for next 5 years, you may not be able to redeem all the units during your goal target year.
Suggest you to invest in a balanced fund + MIP fund combo for next 3 to 4 years and then switch to safer bets before the goal year.
Read:
Best Balanced funds.
Best MIP funds.
Hi Srikanth,
Firstly thanks for reply.
Regarding ELSS fund, as i am salaried person & want to save tax so that, i am choosing this fund.
If i choose totally your option then i will have to pay more tax. Do you have any better suggestion on this.
I have some queries regarding balanced fund + MIP fund suggestion
Query 1:
Regarding your suggestion on balanced fund + MIP fund, i am ready for high risk but will those funds will get that much return (15 lakhs) as i expect.
Query 2:
Why are you suggesting MIP funds. Honestly i don’t much about MIP fund. Can you pls tell how MIP fund will help to achieve my goal.
Query 3:
what if i choose 3 to 4 only balance funds instead of any MIP will this also get the same return ?
Dear Abhijit,
Based on your time-frame (5year) & requirement, have suggested balanced + MIP combo.
Kindly read about MIP, have already shared the link in my previous comment.
Multiple funds from same fund category may not be very beneficial. Read: MF portfolio overlap analysis tools
Hi Srikanth,
Understood your suggestion. Thanks for your instance response.
So, what should be my picks in balance + MIP funds. What do you suggest…?
Regarding fund overlap point i observed that most of funds overlap to other in some percentage. I mean it is very hard to find two fund with 0% overlap.I have checked overlap tool for balance fund
Can you please comment your opinion regarding ELSS tax saving query & query 1 mentioned in above comment.
Dear Abhijit,
HDFC Balanced fund /TATA balanced fund + Birla Sunlife MIP II Wealth 25 plan.
When you are comparing the portfolios of two mutual fund schemes, there will definitely be some overlap.. The real issue is the extreme case where you own several mutual funds in the same fund category, investing in the exact same stocks. You run the risk of not being properly diversified in your investing portfolio.
Regarding ELSS fund, you have keep in mind about the lock-in period & your goal target year.
Hi Srikanth,
Thanks for helping me for designing plan to achieve my goal. I am planning to go ahead with TATA balanced Fund – Direct Plan (G) & Birla SL MIP II-Wealth 25 (G) funds .
Regarding investment in above funds what should be my investment ratio. Should I invest 50:50 in both funds or any specific..?
One more thing, Do you any article which will explain what exactly net return an investor get when he get return means what I want to ask is if suppose for particular year I got 15% return then after that there will some charges that fund house will apply & some charges by government. So, what exactly will be my return amount after all these deduction? Honestly I am weak in these investment calculation.So, is there any article which explain these things in very basic way.
Thanks in advance.
Dear Abhijit,
The ratio can be purely as per your choice and based on your expected portfolio returns.
Most of the equity funds do not charge any EXIT load if the units are redeemed after 12 months.
Its a good opportunity for existing NPS subscribers to shave off 0.25% off contribution costs by using eNPS and netbanking. The current cost is particularly cruel on small, but frequent contributors; if you pay in, say, 1000 rs 12 times a year, you pay 22.90 rs for your POP service provider and rs 5.72 to CRA each time. The CRA cost is unavoidable. The net contribution cost is 2.29% – as good as the costliest mutual funds. With eNPS (netbanking option) you just pay 0.69 rs per transaction i.e 0.07% in the above example. Dont use debit or credit cards you are charged about 1%. Cost will come down further with bigger contributions like 5000 rs per pop to 0.01% as the 0.69 rs charge is fixed. For a savvy investor, the choice is obvious.
Hi sreekanth
Last mnth i asked to BOM branch about nps account. they Told me that that dissolves into APY.
Dear Vikrant..What do they mean by ‘dissolve’?
They told me that nps account can’t open instead of that open in apy
Dear Vikrant,
May be NPS is not available at BOM.
If you want to open NPS you may do so via e-NPS. But kindly note that NPS has some disadvantages as quoted in the article.
Hi Shreekant,
Want to increase my knowledge on Attal Pension Yojna. Is there any connection of this scheme with NPS or its a separate investment option. Moreover do we have any tax advantage on APY scheme.
Dear Vishal,
APY & NPS are two different schemes.
The only common point is, PFRDA administers both the schemes.
No tax benefits are applicable on APY constributions. Read : APY – Details.
Investment in NPS for an additional amnt of Rs.50k under sec 80ccd(1b)over and above Rs.1.50 L in 80c is good &beneficial.
Dear Jana..It is better to THINK beyond taxes when investing..