The NPS Vatsalya scheme launched by the government on September 18, 2024, has been well received by the people. Within three months of its launch, 75000 people have invested money in this scheme. The minimum investment amount in this scheme, launched to secure the future of minors, is Rs 1,000 per annum. Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty gave this information on Saturday. If Rs 10,000 is invested every year in the NPS Vatsalya scheme, then by the time the account holder turns 60, he will have a fund of Rs 2.75 crore.

Finance Minister Nirmala Sitharaman launched NPS Vatsalya in September. The scheme is based on the principle of intergenerational equity, providing cover to the elder and younger members of the family. Currently, there are a total of more than 8 crore subscribers under NPS and Atal Pension Yojana (APY). Assets Under Management (AUM) under NPS is around Rs 14 lakh crore. It is expected to increase to Rs 15 lakh crore by the end of the financial year 2024-25.

Who is eligible for NPS Vatsalya

All minors (persons up to 18 years of age) can participate in the NPS Vatsalya scheme. To open a Vatsalya account, a minimum amount of ₹ 1,000 has to be deposited initially and thereafter ₹ 1,000 has to be contributed every year. The child's parents can open an NPS Vatsalya account by visiting places like registered banks, post offices, and pension funds in person or online. This process can also be completed through the NPS Trust's eNPS platform. According to PFRDA, when the child turns 18, that account will automatically convert into a normal NPS Tier I account.

How much return will be received, and how much will be the corpus?

While launching the scheme on September 18, Finance Minister Nirmala Sitharaman said that NPS has given a return of 14% in equities, 9.1% in corporate bonds, and 8.8% in government securities. If parents contribute ₹10,000 every year for 18 years, then at the end of this period, this investment will become a corpus of about ₹5 lakh at an assumed rate of 10%. If this investment continues till the age of 60 years, then this amount increases significantly depending on different rates of return.

For example, at a rate of 10%, this corpus can reach about ₹2.75 crores. If the average rate of return is 11.59% (based on 50% equity, 30% corporate loans, and 20% government securities), then this amount can go up to ₹5.97 crores. Similarly, if the return is 12.86% (based on 75% equity and 25% government securities) then the fund can reach ₹ 11.05 crore.