National Pension System (NPS) - Build Your Retirement Corpus
Invest in India's government-regulated retirement solution designed to help you create wealth during your working years and generate a regular income after retirement. It combines long-term wealth creation, professional fund management and tax benefits into one retirement solution.
Start Investing in NPS
What is the National Pension System?
The National Pension System (NPS) is a long-term retirement investment solution backed by the Government of India and regulated by PFRDA. It helps individuals build a retirement corpus during their earning years and convert a portion of that corpus into a regular pension income after retirement. With market-linked growth potential, professional fund management and attractive tax benefits, NPS has become one of India's most popular retirement planning solutions.
Key Benefits of NPS
NPS provides the potential for long-term wealth creation through market-linked investments combined with unmatched regulatory oversight and flexibility.
Government-Regulated Pension System
Invest in a retirement solution regulated by PFRDA with strong oversight and transparency.
Tax Benefits up to ₹2 Lakhs
Benefit from deductions under Sections 80CCD(1), 80CCD(1B) and eligible employer contributions.
Professional Fund Management
Your investments are managed by PFRDA-approved Pension Fund Managers.
Choice and Flexibility
Choose your fund manager, investment style and asset allocation preferences.
One Account, Anywhere in India
Whether you change cities, employers, or careers, your NPS account remains active and portable.
Income Generation
Convert a portion of your accumulated corpus into a regular pension after retirement.
Diversified Investment Portfolio
Your investments are allocated across multiple asset classes: Equity (E), Corporate Bonds (C), Government Securities (G), and Alternate Investments (A). This diversification helps balance growth opportunities with risk management.
One of the Few Investments with Additional Tax Benefits:
NPS offers an exclusive additional tax deduction of up to ₹50,000 under Section 80CCD(1B), over and above the standard Section 80C limit.
How Does NPS Work?
Even relatively small contributions made consistently in NPS over long periods can potentially create a meaningful retirement corpus through compounding.
How Does NPS Work?
Even relatively small contributions made consistently in the National Pension Scheme over long periods can potentially create a meaningful retirement corpus through compounding.
NPS Investment Process
Start Contributing
Make regular contributions to your NPS account throughout your working years.
Invest Across Asset Classes
Your money is invested across Equity, Corporate Bonds, Government Securities and Alternate Investments.
Build Your Retirement Corpus
Your investments grow through market-linked returns and long-term compounding.
Generate Retirement Income
At retirement, you can withdraw up to 60% as a lump sum while using a minimum of 40% to purchase an annuity that provides pension income.
How to Invest in NPS Through FundsIndia
Simple Digital Onboarding
Install the App & Sign Up
Install the FundsIndia App, sign up, and log in to your account.
Select NPS & Complete the Form
Select the NPS option from the menu and complete the online NPS account opening form.
Choose Your Preferences
Choose the kind of NPS Account (Tier 1 or 2), and choose the investment option, active or automated.
Make Your Initial Contribution
Make the initial contribution (Minimum ₹500) and complete the payment through NetBanking or UPI.
Track Your Portfolio
Receive your Permanent Retirement Account Number (PRAN) and begin to track and manage your NPS investments online.
Types of NPS Accounts & Usage Rules
NPS offers two account options designed to meet different financial needs, alongside specific rules for costs, withdrawals, and exit timelines.
Tier I Account (Retirement Focused)
Primarily designed for retirement planning with a high retirement focus and tax benefits available. It includes a lock-in period, requires an annuity purchase upon retirement, and withdrawals are subject to NPS rules.
Tier II Account (Flexible Savings)
An optional savings and investment account offering complete liquidity. There is no lock-in period, no annuity requirement, and subscribers can withdraw any amount at any time for any financial goal. Tax benefits are generally not available.
NPS Flexible Features
Early Exit Option (Tier I Account)
Subscribers can exit NPS before retirement after completing the minimum required tenure, subject to conditions. Upon early exit, a minimum of 80% must go toward an annuity purchase, while up to 20% can be taken as a lump sum withdrawal.
Low-Cost Retirement Investing
NPS is highly cost-efficient: Account opening is a one-time fee of ₹400, transaction charges are 0.50% (subject to limits), and fund management charges are among the lowest in the industry. The minimum contribution is ₹500 per transaction, and the minimum annual contribution is ₹1,000.
Choose How Your Money Is Invested
You can choose between two primary investment frameworks
Active Choice
Suitable for investors who prefer control over asset allocation. You can decide how much to allocate to Equity (up to a 75% maximum allocation), Corporate Bonds, Government Securities, and Alternate Investments.
Auto Choice (Life Cycle Funds)
Prefer a hands-off approach? Under Auto Choice, asset allocation is automatically adjusted based on your age and risk profile.
NPS Investment Process
Start Contributing
Make regular contributions to your NPS account throughout your working years.
Invest Across Asset Classes
Your money is invested across Equity, Corporate Bonds, Government Securities and Alternate Investments.
Build Your Retirement Corpus
Your investments grow through market-linked returns and long-term compounding.
Generate Retirement Income
At retirement, you can withdraw up to 60% as a lump sum while using a minimum of 40% to purchase an annuity that provides pension income.
How to Invest in NPS Through FundsIndia
Install the App & Sign Up
Install the FundsIndia App, sign up, and log in to your account.
Select NPS & Complete the Form
Select the NPS option from the menu and complete the online NPS account opening form.
Choose Your Preferences
Choose the kind of NPS Account (Tier 1 or 2), and choose the investment option, active or automated.
Make Your Initial Contribution
Make the initial contribution (Minimum ₹500) and complete the payment through NetBanking or UPI.
Track Your Portfolio
Receive your Permanent Retirement Account Number (PRAN) and begin to track and manage your NPS investments online.
Types of NPS Accounts
Tier I Account (Retirement Focused)
Primarily designed for retirement planning with a high retirement focus and tax benefits available. It includes a lock-in period, requires an annuity purchase upon retirement, and withdrawals are subject to NPS rules.
Tier II Account (Flexible Savings)
An optional savings and investment account offering complete liquidity. There is no lock-in period, no annuity requirement, and subscribers can withdraw any amount at any time for any financial goal. Tax benefits are generally not available.
NPS Flexible Features
Early Exit Option (Tier I Account)
Subscribers can exit NPS before retirement after completing the minimum required tenure, subject to conditions. Upon early exit, a minimum of 80% must go toward an annuity purchase, while up to 20% can be taken as a lump sum withdrawal.
Low-Cost Retirement Investing
NPS is highly cost-efficient: Account opening is a one-time fee of ₹400, transaction charges are 0.50% (subject to limits), and fund management charges are among the lowest in the industry. The minimum contribution is ₹500 per transaction, and the minimum annual contribution is ₹1,000.
Choose How Your Money Is Invested
Active Choice
Suitable for investors who prefer control over asset allocation. You can decide how much to allocate to Equity (up to a 75% maximum allocation), Corporate Bonds, Government Securities, and Alternate Investments.
Auto Choice (Life Cycle Funds)
Prefer a hands-off approach? Under Auto Choice, asset allocation is automatically adjusted based on your age and risk profile.
Auto Choice Breakdown: The LC75 (Aggressive) fund starts with 75% equity exposure at age 35, stepping down to 15% at age 55. The LC50 (Moderate) starts at 50% and drops to 10%, while the LC25 (Conservative) starts at 25% and drops to 5%.
Why Choose FundsIndia for NPS?
From account opening and contribution planning to retirement projections and ongoing guidance, our wealth managers help investors build retirement plans that align with their future goals and lifestyle aspirations.
Dedicated Wealth Managers
Get expert guidance tailored to your retirement goals.
Investment Strategy Guidance
Consult and choose between Active Choice and Auto Choice investment approaches.
Contribution Planning
Discuss and determine how much you need to invest to achieve your retirement goals.
Integrated Wealth Platform
Manage NPS alongside your mutual funds, stocks and other investments.
Retirement Is a Goal, Not an Age
Whether your dream is traditional retirement at 60 or achieving financial independence earlier, your investment strategy should be built around the lifestyle you want to create.
What Our Customers Say
Real feedback from real people building real wealth
Frequently Asked Questions
What is the minimum amount required to start NPS?
You can begin with an initial contribution of ₹500. The minimum annual contribution requirement is ₹1,000.
Can I change my Pension Fund Manager?
Yes. Subscribers can switch their Pension Fund Manager once every financial year.
Can I change my asset allocation?
Yes. Asset allocation and investment preferences can be modified subject to NPS regulations.
Is NPS suitable only for salaried individuals?
No. Salaried professionals, self-employed individuals, freelancers, and business owners can all invest in NPS.
Can I withdraw my money before retirement?
Partial withdrawals are permitted for specified purposes after completing the required lock-in period. Premature exit is also allowed, subject to NPS rules.
Will I receive a pension after retirement?
Yes. A portion of the accumulated corpus is used to purchase an annuity that provides regular pension income after retirement.
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