Investors' Hangout: Top five reasons to invest in NPS

What is NPS and how has it evolved over the years? It was created for government employees. They were entitled to something called a defined benefit system. It ensured a fixed pension linked to their last salary, adjusted for inflation. There was a defined contribution system which was initiated from the year 2004. All government employees who came on board from April 1, 2004, the National Pension System was initiated for them. Here, the government employees contributed 10 per cent of their salary, which was matched by the government. These contributions were invested in pension plans, accumulating over the employees' careers until they retired. What are the auto choice and the active choice options in NPS? NPS offers two investment options: auto choice and active

This article was originally published on June 07, 2024.