NPS Made Easy: Zerodha’s New App

If you are looking for a simple, beneficial and secure way to boost your retirement income, you might want to check out the new app from Zerodha, India’s largest direct mutual funds platform. The app, called Coin, allows you to invest in the National Pension System (NPS) with zero commission and instant profile opening.

What is NPS?

NPS is a voluntary, defined contribution retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It aims to provide a steady income after retirement by investing your contributions in various market-linked schemes. You can choose from different pension fund managers, asset classes and investment options based on your risk appetite and return expectations.

What are the benefits of NPS?

NPS offers several advantages for long-term investors, such as:

• Tax benefits: You can claim deductions on your contributions up to Rs 1.5 lakh under Section 80C and an additional Rs 50,000 under Section 80CCD(1B) of the Income Tax Act. The returns and withdrawals are also partially or fully exempt from tax, depending on the type of account and the age of withdrawal.
• Market-linked returns: NPS offers the potential for higher returns than traditional fixed income products, as it invests in equity, corporate debt, government securities and alternative assets. The historical returns of NPS have been in the range of 9-12% per annum, depending on the scheme and the fund manager.
• Low cost: NPS charges a very low fee of 0.01% per annum on the assets under management, which is much lower than most mutual funds and insurance products. This means more money stays in your account and grows over time.
• Flexibility: You can choose how much to contribute, how often to contribute, how to allocate your funds and how to withdraw your money. You can also switch between different schemes and fund managers up to twice a year.

How to invest in NPS on Coin?

Investing in NPS on Coin is very easy and convenient. You just need to follow these steps:

• Login to your Zerodha account or sign up for free if you don’t have one.
• From the dashboard, click on NPS and agree to the terms and conditions.
• Enter your place of birth, parent’s name on PRAN (Permanent Retirement Account Number) card and marital status.
• Choose your pension fund manager, scheme preference and investment option.
• Make your contribution using UPI or net banking.

That’s it! Your NPS profile will be created instantly and you can start investing in NPS for a secure future.

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