Subscribers can invest up to 50 per cent in equity under Scheme E of NPS

General Provident Fund or GPF were available only for government employees before January 2004. National Pension System or NPS was made applicable for all government employees joining with effect from January 2004. But it was only from May 2009 that NPS was made available to all Indian citizens.

NPS, which is measured by the Pension Fund Regulatory and Development Authority (PFRDA), is a benefit available after retirement where a subscriber has the option to select from many asset classes. For investments that are made towards equity under Scheme E of NPS, government subscribers can provide up to 50 per cent of their total investments. Active and auto choices are the two different investment options available to them. NPS permits investors to have a retirement corpus that invests in equity, thus giving inflation-adjusted returns.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.