Message: Return type of CI_Session_null_driver::open($save_path, $name) should either be compatible with SessionHandlerInterface::open(string $path, string $name): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::close() should either be compatible with SessionHandlerInterface::close(): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::read($session_id) should either be compatible with SessionHandlerInterface::read(string $id): string|false, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::write($session_id, $session_data) should either be compatible with SessionHandlerInterface::write(string $id, string $data): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::destroy($session_id) should either be compatible with SessionHandlerInterface::destroy(string $id): bool, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
Message: Return type of CI_Session_null_driver::gc($maxlifetime) should either be compatible with SessionHandlerInterface::gc(int $max_lifetime): int|false, or the #[\ReturnTypeWillChange] attribute should be used to temporarily suppress the notice
NRIPage | Articles | How to Start a Systematic Investment Plan (SIP) in NPS: Benefits, Eligibility, and Tax Savings | Get Money, Finance & Investment Tips. Master Money Management & Smart Investments - NRI Page
The National Pension Scheme (NPS) is a government-backed retirement savings initiative designed to provide individuals with long-term financial security. With its tax benefits and flexible investment options, NPS is an attractive choice for those looking to systematically build a pension corpus. One of the most convenient ways to contribute to NPS is through a Systematic Investment Plan (SIP), which allows individuals to invest small amounts regularly, ensuring a disciplined approach to retirement savings.Setting up an SIP in NPS is a simple process that enables individuals to make periodic contributions towards their pension fund. This method allows for gradual accumulation of funds, making retirement planning more accessible to salaried professionals, self-employed individuals, and investors looking for reliable financial security.
Benefits of Investing in NPS
The National Pension Scheme provides multiple benefits to policyholders, making it a viable long-term investment option. One of the most significant advantages is the tax benefit offered under different sections of the Income Tax Act. Individuals investing in NPS can claim deductions of up to Rs 1.5 lakh under Section 80C and an additional Rs 50,000 under Section 80CCD (1B). These tax incentives make NPS one of the most tax-efficient retirement savings plans available in India.Additionally, NPS offers a structured investment mechanism, allowing investors to choose between different asset allocations based on their risk appetite. Investors can select between equity, corporate bonds, and government securities, ensuring diversification of funds.Another advantage of NPS is its flexibility. Investors can choose from multiple annuity options, allowing them to receive regular pension payouts post-retirement. Moreover, the scheme provides liquidity, enabling partial withdrawals under specific conditions.
Steps to Start a Systematic Investment Plan (SIP) in NPS
Setting up an SIP in NPS is a straightforward process that can be completed online through the official NPS portal. Here are the steps to get started:
Log Into Your NPS Account: Visit the official NPS website and sign in using your credentials. If you do not have an NPS account, register through the website or intermediaries.
Go to the Investment Section: Navigate to the ‘Investment’ tab and click on ‘Contribution’ to proceed with setting up your SIP.
Choose the SIP Option: Select the SIP feature and decide the amount you wish to invest regularly. You can choose a contribution frequency of monthly, quarterly, or half-yearly.
Select an Asset Allocation Plan: Investors can pick from single or multiple schemes based on their preferred asset allocation, such as equity, corporate bonds, and government securities.
Review and Submit Details: Verify your investment choices, enter bank details for automatic deductions, and set the first installment date. If required, complete the Know Your Customer (KYC) process.
Make the First Contribution: Pay the initial installment using net banking, debit card, or any other available payment method.
Minimum and Maximum Investment Limits
The NPS SIP requires a minimum investment of Rs 500 per installment, making it accessible to a wide range of investors. The maximum contribution per installment is Rs 1,00,000, but individuals can set up additional SIPs if they wish to invest more towards their retirement savings.If an investor misses an SIP installment, the amount will not be deducted automatically. However, contributions can be made manually, and subsequent deductions will resume from the following month.NPS is a long-term financial planning tool that provides investors with a steady source of income post-retirement. By incorporating the SIP feature, investors can systematically contribute small amounts while benefiting from government-backed security and tax exemptions. With its flexibility, low entry requirements, and structured investment approach, NPS remains one of the most reliable pension schemes in India.
