National Pension System (NPS) for NRIs & Long-Term Retirement Planning
Build a structured retirement corpus through NPS while planning for your long-term financial goals in India. NRIs can subscribe to NPS subject to applicable eligibility, KYC, banking and regulatory requirements.
Understand, plan and invest for retirement through NPS
All in one place
PFRDA
Regulated pension scheme
E · C · G · A
Four asset classes to choose from
Active & Auto
Two ways to choose your allocation
Tier I
Long-term retirement account
The National Pension System (NPS) is a voluntary, market-linked retirement scheme regulated by PFRDA. It lets you invest regularly over your working life and build a corpus for retirement, with a choice of asset classes and investment styles. NRIs can subscribe subject to applicable eligibility, KYC, banking and regulatory requirements. Investify Prism helps you understand how NPS works and supports you through the onboarding process.
Key Features
Retirement-Focused Investing
NPS is a long-term, market-linked pension scheme regulated by PFRDA, designed to help you build a retirement corpus.
Choice of Asset Classes
Allocate across equity, corporate debt, government securities and alternative assets, within the limits set by the regulator.
Active or Auto Choice
Pick your own allocation under Active Choice, or let an Auto Choice life-cycle option shift the mix as you age.
Professional Fund Management
Your contributions are managed by pension fund managers registered with PFRDA, under a defined investment framework.
Cost-Conscious Structure
NPS is known for its relatively low fund management charges, subject to the applicable fee structure.
Flexible Contributions
Contribute at your own pace, subject to the minimum contribution requirements that apply to your account.
Possible Tax Benefits
Contributions may be eligible for tax benefits under applicable income tax provisions. Please consult a tax professional.
Dedicated Relationship Support
Get assistance from Investify Prism with onboarding, account-related queries and service requirements.
Common Questions
NPS is a voluntary, long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). You contribute regularly during your working years, your money is invested in a mix of asset classes, and the accumulated corpus supports your retirement.
How NPS Works, From First Contribution to Pension
- 01
Open your NPS account
Complete KYC and register to receive your Permanent Retirement Account Number (PRAN), subject to the eligibility rules that apply to you.
- 02
Choose how to invest
Pick a pension fund and decide between Active Choice and Auto Choice, then set how much goes into each asset class.
- 03
Contribute regularly
Add money at your own pace over your working years, subject to the minimum contribution rules, so the corpus can grow over time.
- 04
Draw a pension at retirement
At exit, part of the corpus is used to buy an annuity for a regular pension and the rest can be withdrawn, as per PFRDA rules.
The Four Asset Classes in NPS
NPS spreads your contributions across these asset classes. How much goes into each depends on the choice you make.
Equity
Invests mainly in company shares and aims for long-term growth, with higher ups and downs along the way.
Corporate debt
Invests in bonds issued by companies, generally seeking steadier income than equity with some credit risk.
Government securities
Invests in bonds issued by the government, usually considered lower risk than corporate debt and equity.
Alternative assets
A smaller allocation to assets such as REITs and InvITs, available within the limits set by the regulator.
Active Choice or Auto Choice?
NPS gives you two ways to decide how your money is invested. Neither is better for everyone, so the right one depends on how involved you want to be.
Active Choice
You decide how your contributions are split across the asset classes, within the limits set by the regulator.
- Suits investors who want control over the mix
- You can review and change the split over time
Auto Choice
A life-cycle option automatically shifts your allocation towards safer assets as you get closer to retirement.
- Suits investors who prefer a hands-off approach
- The equity share reduces gradually with age
NPS for NRIs: What to Check
NRIs can subscribe to NPS subject to applicable eligibility, KYC, banking and regulatory requirements. We help you go through these points before you begin.
- Your eligibility and the KYC documents required for your profile
- The bank account used for contributions and the rules attached to it
- How contributions, withdrawals and exit proceeds are treated for an NRI
- Any repatriation rules that apply to money coming out of the scheme
- The tax position in India and in your country of residence
NPS is a market-linked scheme and returns are not guaranteed. Rules for contributions, withdrawals and taxation are set by the regulator and tax authorities and can change. Please read the scheme documents carefully and consult a tax professional.
Let’s Talk About Your Wealth Goals
Whether you are building your first investment portfolio, managing substantial wealth or looking to diversify an existing portfolio, Investify Prism can help you explore investment solutions aligned with your financial objectives, investment horizon and risk preferences.
Speak with Kishore Devaraj to discuss your goals and explore the available investment options.