NPS Vatsalya Calculator: What can be your monthly investment to get Rs 78 lakh corpus by the time your child turns 18?
NPS Vatsalya Calculator: Children from 0 to 18 years old will be eligible for the scheme. The NPS Vatsalya account can be closed or converted into a normal NPS account at 18 years of age.
NPS Vatsalya Launch: Finance minister Nirmala Sitharaman on Wednesday (September 18, 2024) opened the National Pension System (NPS) to minor children under the name of Vatsalya. Parents and guardians on behalf of their children/minors can open an NPS Vatsalya account.
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Where can NPS Vatsalya account be opened?
The account can be opened online and offline in a nationalised bank, PFRDA-accredited PoS, and post office.
NPS Vatsalya Scheme: Who is eligible?
Children from 0 to 18 years old will be eligible for the scheme. The NPS Vatsalya account can be closed or converted into a normal NPS account at 18 years of age.
NPS Vatsalya Scheme: Investment choices
Like a normal NPS account, the NPS Vatsalya account will have auto choice and active choice. By default, NPS account holders will get Moderate Lifecycle Fund, where equity's proportion will be 50 per cent. In Auto Choice, they will get a 75 per cent/50 per cent/25 per cent equity option, while in Active Choice, they can have up to 75 per cent equity selection. On the other hand, active choice holders can also choose corporate debt and government security options up to 100 per cent each.
NPS Vatsalya Scheme: Required documents
The account will be opened in the name of the minor child with their birth certificate as the main document. However, for know your customer (KYC) purpose, the parent's Aadhaar card, driving license, passport, voter ID, NREGA job card, or National Population Register card will be required. The parent's PAN card is a must to open an NPS Vatsalya account. PRAN will be issued in the name of the minor.
NPS Vatsalya Scheme: Minimum Investment
The minimum yearly contribution is Rs 1,000 a financial year.
NPS Vatsalya Scheme: Corpus Withdrawal
At 18 years of age, one can withdraw up to 20 per cent of the total corpus. From the rest of the 80 per cent amount, they need to purchase annuity. However, if the total corpus is less than Rs 2.50 lakh, they can withdraw the entire amount.
NPS Vatsalya: Corpus on Rs 10,000 monthly contribution for 18 years
If one gets 10 per cent annualised return on Rs 10,000 monthly investment for 18 years, the amount invested will be Rs 21,60,000, and the expected corpus will be Rs 57,63,980.
NPS Vatsalya: Corpus on Rs 10,000 monthly contribution for 18 years
If one gets 12 per cent annualised return on Rs 10,000 monthly investment for 18 years, the expected corpus will be Rs 71,17,286.
NPS Vatsalya: Corpus on Rs 10,000 monthly contribution in 18 years
If one gets 12.86 per cent annualised return (which is historical return on 75 per cent equity selection in NPS) on Rs 10,000 monthly investment for 18 years, the expected corpus will be Rs 78,01,061.
Disclaimer
(Our calculations are projections and are not investment advice. Please do your due diligence or consult an advisor for financial planning).