NPS Tier I & II Accounts: 5 Things To Know

Outlook Money

Wealth Creation

NPS Tier I and Tier II accounts provide guaranteed pension and wealth-creation opportunity to achieve financial goals at retirement.

Money exchange

Advantage of Tier-I Account

NPS Tier I accounts do not have an upper limit for investments. The minimum annual contribution is Rs 500, and the maximum is Rs 1,000.

Advantage of Tier II Account

The minimum annual contribution is Rs 250. It allows up to 100% equity allocations, as this account is mainly used for wealth creation.

Asset Classes

NPS invests in four asset classes: stocks, corporate debt instruments, government bonds, and alternative investment funds (AIFs).

Investment Options

In active mode, the maximum equity allocation is 75%; in auto mode, it could range from 25-75%, depending on the plan options.

Compiled By Himani Verma

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