NPS Vatsalya Scheme: Do you worry about your child’s future? Despite your low income, if you want to add some big money to children, then this plan will be useful for you. In this scheme of the government, Rs 11 crore can be added for children by investing Rs 834 every month. The Central Government has launched the NPS Vatsalya Yojana in September 2024, which can convert small investment into crores. The aim of this scheme is that medium and low -income families get an easy way to invest in the name of children, so that they can create a strong fund at the time of retirement.
How does the plan work?
Under this scheme, any parent can invest Rs 834 a month i.e. Rs 10,000 annually in the name of a child under 18 years of age. If this investment is made continuously and the child continues investing till the age of 60 years, then the fund can reach around Rs 11 crore. This estimate is from when the average return of investment is 12.86% per annum, which may be possible in the Aggressive Investment Option of the scheme.
Who can get benefit?
The child is under 18 years of age.
He must have a PAN card and Aadhaar card.
As soon as the child is 18 years old, his account will turn to NPS Tier-1 Account.
How many amount can you start with?
Can start with 1,000 annually.
There is no maximum investment limit, that is, when income increases, you can also increase investment.
Investment Options – Choose according to risk
Aggressive Mode – 75% in the stock market (high risk, higher profits)
Moderate Mode – 50% in the stock market (moderate risk, balanced profits)
Conservative mode – 25% in the stock market (low risk, stable returns)
Apart from this, there is also an active choice, where you can decide for yourself how much money should be made in equity and how much debate.
Short investment, big advantage
If a parent starts investing Rs 10,000 annually when a child is born, then such an amount can be made on the returns given below.
12.86% on returns – Rs 11 crore
11.59% on return – Rs 5.97 crore
10% Return – Rs 2.75 crore
Although these estimates are, the real return will depend on the market move and your investment strategy.
Facility to withdraw money in times of need
After 3 years, up to 25% of the total investment can be extracted. This money can be used for essential expenses like education, treatment or disability. This facility is provided 3 times a total.
What will happen when the child is 18 years old?
If the fund is more than Rs 2.5 lakh, then an annuity will be taken from 80% amount. 20% of the money can be withdrawn at a time.
If the fund is Rs 2.5 lakh or less, then the entire amount can be extracted at once
If the child dies?
The entire deposit amount will be transferred to parents
Why is this plan special?
Today, when most of the investment schemes start with a large amount, the NPS Vatsalya Yojana is a good investment option for poor and middle class families. In this, you can create a big and safe future for your child with a little savings. If you also want to make your children financially self -sufficient, then this scheme can be a great option for you.
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