Achi news desk-
GCC is a government-backed pension scheme launched in 2004. It is regulated by the Pension Fund Regulatory and Development Authority. (Representative image)
NPS offers tax benefits and flexibility in investment choices, making it a popular retirement savings option in India.
Systematic Investment Plans (SIPs) within the National Pension System (NPS) give subscribers the flexibility to make consistent contributions, fostering a disciplined and convenient approach to retirement savings without the need for market timing. Much like mutual funds, SIPs empower NPS participants to take advantage of rupee cost averaging. Adjusting current investments is simplified, offering the potential for higher returns.
GCC is a government-backed pension scheme launched in 2004. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS aims to provide retirement income to Indian citizens.
GCC operates on a defined contribution basis, where subscribers contribute regularly towards their pension fund during their working years. These contributions are invested in various financial instruments such as equities, government securities, corporate bonds, and alternative assets.
After retirement, subscribers can withdraw a portion of the accumulated corpus as a lump sum, while the remaining amount is used to purchase an annuity that provides regular pension income.
NPS offers tax benefits and flexibility in investment choices, making it a popular retirement savings option in India.
Register for SIP (Systematic Investment Scheme) under NPS (National Pension System)
Advantages of SIP
- Using SIP as an investment method makes it simple and hassle-free.
- SIP allows you to get timely and small investments regularly. Ideal for subscribers who want to invest a fixed amount regularly and it’s lighter on your wallet too
- Helps you plan for your goals better because with SIP setup you will no longer need to make lump sum payments for your NPS account
- SIP helps you benefit from the ‘Power of Compounding’ by investing regularly over a long period
- With Rupee Cost Averaging, there is no need to time the market anymore
SIP Registration Steps under NPS
- An existing subscriber needs to enter the PRAN and DOB number and then select the option ie, Email ID or Mobile number or both and click on “Submit OTP”.
- An OTP will be sent to subscribers. Enter the six digit OTP and “Continue”.
- Select the option “New SIP Registration in NPS” and “Submit”.
- The subscriber is required to enter a few details ie, SIP Amount, Tier Type, SIP Date, Maturity Month and Year and SIP Frequency.
- A subscriber is required to enter bank details for the online e-mandate process. The amount will be withdrawn from the same bank account. Click Here for a list of banks included for the SIP Process.
- The subscriber will display the details entered for the verification process. After verification click on “Continue”.
- SIP registration will be sent to the bank for authorization. Once the authorization is successful the amount will be debited from the Subscribers bank account as per SIP Amount and SIP Frequency.
- Subscribers can also view “SIP Registered Status” and “List of SIP transactions”.
Steps for Cancellation of SIP under NPS
- Existing subscriber needs to enter the PRAN and DOB number and then select the option ie, Email ID or Mobile number or both and click on “Submit OTP””.
- An OTP will be sent to subscribers. Enter the six digit OTP and “Continue”
- Select the option “Cancel SIP” and “Submit”.
- Select the SIP ID that needs to be canceled and click “Submit”.
- Your SIP will be eligible for cancellation after the first two SIP renewal dates.
Disclaimer: The opinions and investment tips of experts in this News18.com report are their own and not those of the website or its management. Readers are advised to check with certified experts before making any investment decisions.
