National Pension System: Here are the charges you must know before opening NPS account

Investments are never done in one scheme. Experts always advise investors to diversify their portfolio and invest in multiple offerings. For those looking to build a retirement corpus, National Pension Scheme emerges as an attractive option, especially with most banks reducing their fixed deposit rates. NPS is designed to enable the subscribers to make investments through systematic savings during their working life.  

The investments made under this scheme are pooled into a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines into the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares.  

Documents required to open NPS:  

Completely filled in subscriber registration form 

Proof of Identity 

Proof of Address 

Age/date of birth proof. 

Cancelled Cheque (if applicable)  

Any citizen of India, whether resident or non-resident can open an NPS account, subject to the following conditions: 

Individuals who are aged between 18 – 65 years as on the date of submission of his/her application to the POP/ POP-SP. The citizens can join NPS either as individuals or as an employee-employer group(s) (corporates) subject to the submission of all required information and Know your customer (KYC) documentation.  

What are the NPS charges? 

The investors should know about certain charges before opening an NPS account. To begin with, there is the management cost’ called Investment Management Fee which is 0.01 per cent.  

This means that for every Rs 10 lakh, the fee will be 100, which is paid to the pension fund managers. There are quite a few other charges, some of which are at the POP level while some at the CRA level. However, NPS is a relatively low maintenance fund.