Steps to invest in the NPS: THE PFRDA HAS MADE IT SIMPLE

As a first step, you need to register yourself with the NPS . Get an application form from a Point of Presence Service Provider or download it from the NSDL website- NPSCRA. Fill the form and submit it at a nodal office of an POP-SP.

1)DOCUMENTS NEEDED-you need to submit copies of proof of identity and residence . Carry original for verification. Passport Aadhaar card, ration card, voter ID, DL, utility bills etc.

2) APPLY ON LINE –The process is very simple if your mobile number is linked to your Aadhaar card. Just log on to the NSDL website–, key in your Aadhaar number and you will receive a one -time password(OTP) on your registered mobile number. The OTP is for authentication. If validated, the investor details and photo are automatically filled up in the online form.

3) INITIAL CONTRIBUTION—After you upload the form, you will be routed to a payment gateway for the initial contribution to your NPS account. The minimum amount is 500. You can pay by debit or credit card or by internet banking.

4) PRAN card–After you make the payment , a permanent Retirement Account Number (PRAN) will be allotted to you. In a few days, you will receive a welcome kit from the PFRDA containing a PRAN card, IPIN, TPIN and scheme details.

5) SUBMITTING FORM ON LINE–Take a print of the form you filled on line, paste your photograph on it and sign in the space for signature This form should be sent to the Central Recordkeeping Agency—-(eNPS) NSDL e-Governance Infrastructure LTD, 1st floor, Times Tower, , Kamla, Mills Compound, Senapati,Bapat, Marg, Lower Parel, Mumbai-400013

6) CHOOSING A PENSION FUND– In the form, you will have to mention the pension fund you want to invest in. There are seven pension funds available to investors in the general category–HDFC Pension Fund, ICICI Prudential Pension Fund, Kotak Pension Fund, LIC Pension Fund, Reliance Capital Pension Fund, SBI Pension Fund, UTI Retirement Solutions. An investor can switch also to another pension fund but only once in a year.

7) ASSET MIX–You will also have to mention the asset mix for your investments . There are three classes of funds–

E-CLASS–These are equity funds that invest in stocks. Till now, pension fund managers could invest only in Nifty shares in the same proportion as their weightage in the index. But now the PFRDA has allowed fund managers to invest in a broader universe of shares that are in the F&O segment. You can not put more than 50% in these funds.
C CLASS–These are corporate debt funds that invest in bonds issued by companies.
G CLASS–These funds invest in government securities.

8) AUTO CHOICE–This option suites investors who are unsure about the asset mix. The asset allocation here depends on the age of the investor. Till the age of 35 years, 50% of his corpus will be in the equity funds and the rest in corporate debt gilts. Every year 2% of the assets in the equity fund and 1%of the assets in corporate bonds will be shifted to the gilt fund. In five years, by the time he if 40, the equity exposure of the NPS corpus would be down to 40%. By the time he is 55, he will have only 10% in equities, 10% in bonds and 80% in gilts.