Tier-II NPS accounts have given double digit returns in the last three years. Among these, LIC Pension Fund has been at the top and HDFC Pension Fund Manager at the second number.
In the last three years, almost all the National Pension System Tier-II in Government Securities funds have given double digit returns. In these three years, 7 pension fund managers have given annual returns ranging from 11.01 per cent to 13.5 per cent. At the same time, the benchmark CCIL Sovereign Bond and the 10-year Guild Mutual Fund have given a return of only 10.78 per cent.
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LIC Pension Fund number one is retained in the
Tier-II segment. LIC Pension Fund is ranked first. It has earned a return of 13.5 per cent in three years. Value researchThe information of this gets information about this. Close to LIC is also the HDFC Pension Fund. HDFC Pension has given a return of 11.7%.
LIC Pension Fund has given the highest return even in the return period of 5 years. LIC Pension Fund has given a return of 11.88 per cent during this period. Thus in terms of returns, it has managed to outrank all NPS funds and mutual funds.
Why only NPS Tier-2 accounts
Unlike the retirement accounts of NPS Tier-1, which are matured at the age of 60, NPS Tier-2 has many advantages. Since this is an investment account, you can withdraw money according to your need. However, except government employees, there is no tax benefit on Tier-2 accounts under section 80C of Income Tax Act. The low expense ratio of a basis point makes it attractive to investors. This will remain in force even after the new pension fund managers are selected by the Pension Fund Regulatory and Development Authority (PFRDA) next year. Maximum proposed investment management fee of 0.09 per cent and 0 for Equity Schemes.
How to invest in a Tier-2 NPS account To invest in a
Tier-2 account, you must open a Tier-1 retirement account. A new account can be opened for a minimum of Rs 1,000, in which further contribution of at least 250 rupees will have to be made. Since it is a voluntary account, it is not mandatory to invest in it every year. You can choose one pension fund manager in 7 for this.
It is not necessary that you choose the same Tier-2 pension manager, which you have selected for Tier-1 account. The rules of investment will be similar to Tier-1 account. Subscribers under 50 years of age will get an exposure of 75% in the equity asset class. Alternatively, you can choose the Auto Choice Investment option to manage your capital.
