Blogger Tips and TricksLatest Tips And TricksBlogger Tricks

moving

Blogger Tips and TricksLatest Tips And TricksBlogger Tricks

Sunday, May 13, 2018

What are the types of funds available in NPS?

NPS offers two accounts: Tier-I and Tier-II accounts. Tier-I is a mandatory account and Tier-II is voluntary. The big difference between the two is on withdrawal of money invested in them. You cannot withdraw the entire money
from Tier-I account till your retirement. Even on retirement, there are restrictions on withdrawal on the Tier-I account. The subscriber is free to withdraw the entire money from the Tier-II account.
The NPS offers two investment choices:
Active Choice: This option allows the investor to decide how the money should be invested in different assets.
Auto choice or lifecycle fund: This is the default option which invests money automatically in line with the age of the subscriber.

No comments:

Post a Comment