The National Pension Scheme’s spin-off for children, known as the NPS Vatsalya Scheme, allows parents to open and operate an account for their minor child, till such time that the sole beneficiary attains majority at 18 years of age.<\/p>\n
Launched in September 2024, it is regulated and administered by the Pension Fund Regulatory Authority of India (PFRDA<\/a>) and allows parents to secure their child’s financial future.<\/p>\n NPS Vatsalya: Check investment choices<\/p>\n \u2013 Conservative Life Cycle Fund (LC25),<\/p>\n \u2013 Moderate Life Cycle Fund (LC50 – Default),<\/p>\n \u2013 Aggressive Life Cycle Fund (LC75).<\/p>\n \u2013 Equity <\/a>(E): Maximum 75%<\/p>\n \u2013 Corporate Bonds (C): Up to 100%<\/p>\n \u2013 Government Securities (G): Up to 100%<\/p>\n \u2013 Alternate Assets (A): Maximum 5%<\/p>\n Contributions to the NPS Vatsalya account<\/p>\n \u2013 Contributions under the scheme <\/a>can be made by the guardian or the subscriber through various modes of contribution as stipulated by PFRDA from time to time.<\/p>\n \u2013 The minimum contribution for account opening and annual contribution shall be \u20b91,000. However, as the objective of the scheme is to obtain a compounding effect for the long-term savings, it is advisable to contribute as much as possible, depending on the capacity to pay or contribute.<\/p>\n \u2013 The parent or guardian needs to exercise the following choices at the time of opening of the account:<\/p>\n