HDFC Pension Fund
5Y Returns % (p.a.)
13.60%
No. of Subscriber
14.05 Lakhs
AUM
Government-Backed
Security
Up to 12-14% P.A.
Returns*
₹500
Minimum Investment
Triple
Tax Benefits
Top Performing NPS Plan
Plan your retirement with India's leading National Pension Scheme
Benefits of Investing in NPS
Guaranteed Benefit
Guaranteed Annuity Income for the whole of life by paying premiums for a Single or Limited payment term.
Flexible Payout Options
Flexible payout options to receive your Annuity amount – Monthly, Quarterly, Half-yearly or Yearly.
Multiple Annuity Options
4 Annuity options to choose from: Life Annuity, Life Annuity with Return of % of Total Premiums Purchase Paid, Life Annuity with Early Return, Increasing Annuity.
Annuity Deferment Option
Option to defer Annuity payouts by choosing the deferment period.
How To Invest in National Pension Scheme Online
Start investing in NPS by opening a free online Demat account with Choice
STEP 1
Register with mobile no.
for quick OTP verification
STEP 2
Complete KYC Process
by verifying your details
STEP 3
E-Sign via Aadhar
to activate your account
STEP 4
Choose a pension fund
and make regular contributions
Offline Process to Invest in NPS with Choice
Choice offers you the option to invest in NPS offline:
- Step 1
Connect with Our Team
Contact Choice Wealth to get started with your NPS investment.
- Step 2
Documentation Assistance
Our experts will guide you in completing the necessary paperwork, including:
- PAN or Aadhaar Card
- Address Proof (Aadhaar, Passport, Utility Bill, etc.)
- Recent Passport-Sized Photograph - Step 3
Application Submission
Submit your completed NPS application form along with the required documents.
- Step 4
Account Setup via HDFC
We partner with HDFC as an external service provider to facilitate the NPS account opening process. HDFC will verify your details and process the account setup.
- Step 5
Make Your Initial Contribution
Start your NPS journey by making the first investment, ensuring compliance with the minimum contribution requirements.
- Step 6
Receive PRAN (Permanent Retirement Account Number)
Once your account is set up, you’ll receive a unique PRAN for account management and future transactions.
- Step 7
Regular Contributions
Continue contributing to your NPS account as per your financial goals.
Types of NPS Accounts
The National Pension Scheme offers investors two types of accounts to choose from
Tier 1 Account
Government employees contribute 10% of their base pay plus DA. Other employees invest a minimum of ₹500 initially and ₹6,000 annually.
Tier 2 Account
Offers no tax breaks or matching contributions. It allows flexible withdrawals at any time. Opening a Tier 2 account requires an initial payment of ₹1,000 with subsequent top-ups of ₹250 to maintain an annual balance of ₹2,000 plus.
Why Invest in the National Pension System (NPS)
The National Pension Scheme stands out as a dependable retirement solution, offering comprehensive benefits across multiple dimensions.
Regulated
NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring transparency, accountability, and secure management of your investments.
Voluntary Participation
Open to all Indian citizens aged 18-70 years, allowing individuals to start investing at their convenience, whether salaried, self-employed, or non-working.
Flexibility
Tailor your investment mix with the option to allocate funds across equity, corporate bonds, and government securities based on your financial goals and risk appetite.
Cost-Effective
Among the lowest fund management charges, ensures a significant portion of your contribution is directed toward building your retirement corpus.
Portability
NPS accounts are portable across jobs and locations, making it a seamless retirement savings option irrespective of your professional or geographic shifts.
Tax Advantages
Offers tax benefits of up to ₹2 lakh annually under Sections 80C and 80CCD(1B), along with tax exemptions on partial withdrawals and annuity investments.
EET Benefit
Leverage Exempt-Exempt-Taxed status. Your contributions are tax-exempt, accumulated earnings remain tax-free in the investment period, and only pension income is taxed on withdrawal, boosting your wealth creation potential.
Retirement Benefit
NPS permits a tax-free lump sum withdrawal of up to 60% of the corpus. At the same time, the remaining portion secures a guaranteed pension income through annuity plans, ensuring financial stability throughout retirement.
Cost Benefit
By offering low fund management charges, between 0.01% and 0.09%, NPS maximises your returns by reducing costs. No entry and exit loads and transparent fee structures make it among the most cost-effective retirement solutions available.
Who Can Invest In NPS
The National Pension Scheme is designed to provide retirement security to:
Indian citizens aged 18-70 years
NRI and OCI investors with valid documents
Corporate employees via employer contribution
Government employees
Self-employed professionals and business owners
Individuals seeking structured retirement planning
Minimum Investment
₹500 per month (Tier 1) & ₹1,000 per year (Tier II)
Maximum Age of Entry
70 years
NPS Scheme Calculator
Plan your retirement corpus with our smart NPS calculator
How Does NPS Work?
The National Pension Scheme (NPS) is a systematic, government-backed retirement savings plan designed to provide financial security through disciplined, long-term investing.
Your Investment Journey
Start your NPS account with a flexible minimum contribution of ₹500 monthly. You can choose between two strategic investment approaches:
Age-Based Allocation
- Adaptive equity exposure tailored to your life stage
- Under 35: Up to 75% equity (higher growth potential)
- 35-45: Gradually reducing equity exposure
- Over 45: Conservative allocation prioritising capital preservation
Self-Directed Investment
- Customise your portfolio across
- Equity (maximum 75%)
- Corporate bonds
- Government securities
- Alternative investment funds
Retirement Maturity (Age 60)
Upon reaching 60, your NPS offers a flexible withdrawal mechanism
40% Annuity Plan
- Mandatory 40% corpus conversion to guaranteed income
- Multiple provider options
- Pension income variants
- Lifetime self-pension
- Purchase price return pension
- Joint life pension
60% Withdrawal
- Tax-free lump sum option
- Reinvestment flexibility
- Phased withdrawal available
- Complete financial liquidity
Explore Other Investment Avenues
National Pension Scheme FAQ
A government-backed voluntary retirement program that helps build a pension corpus through regular contributions and market-linked returns.
Tax benefits up to ₹2 lakh annually, professional fund management, flexible investment options, and systematic retirement planning with returns up to 12-14%.
Yes, for long-term retirement planning with tax benefits, professional management, and potential returns of 12-14% in equity schemes. Suitable for systematic wealth creation.
Returns vary based on the chosen investment option - equity schemes have delivered 12-14% historically, while government securities provide 7-9% annually.
Until retirement age (60 years), with partial withdrawal allowed after 3 years for specific needs like children's education or home purchase.
The entry age is 18-65 years and the exit age is 60 years (normal) or 70 years (extended).
NPS offers higher return potential and tax benefits, while PPF provides guaranteed returns. NPS suits aggressive investors, and PPF suits conservative ones.
The Pension Fund Regulatory and Development Authority (PFRDA) regulates and supervises NPS operations.
At maturity, 60% of withdrawal is tax-free under Section 10(12A). The remaining 40% must be used for annuity purchase, with pension taxed as income.
Partial withdrawal of up to 25% is allowed after 3 years for specific needs. Complete withdrawal is permitted only at retirement.
The entire corpus is paid to the nominated beneficiary, who can choose between lump sum withdrawal or purchase of annuity.