Investing in NPS Tier I and Tier II Account by Alankit
National Pension System (NPS) is a Government introduced security initiative to provide retirement benefits to all citizens of India, even from the unorganized sectors. The voluntary contribution scheme ensures financial security by encouraging individuals to invest regularly in a pension account during their employment period. While NPS is gradually gaining investors’ attention due to its exclusive tax benefits, it may confuse investors at the time of investing. NPS offers two types of investment accounts - Tier I and Tier II. To start investing in NPS, an investor first needs to open an account under Tier I before opening Tier II account. Similarities: Tier I and Tier II Both the investment accounts under NPS are similar. Both Tier I and Tier II have similar charges and choice of fund managers and pension schemes. The asset classes in which the Pension Fund Managers (PFMs) can make investment are also the same. 0.01% is charged on asset management and 0.0032%...