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Many choices make NPS complicated

Both debt and equity can be allocated in different proportions depending on your age and risk profile

The National Pension System (NPS) is gaining popularity. According to figures provided by the Pension Fund Regulatory and Development Authority (PFRDA), enrolment in the all-citizens model rose 148 per cent to 215,372 in March-end 2016, from 86,774 in March-end 2015. The primary factor is tax benefits. "The effective tax benefits on investment in NPS increased from Rs 1 lakh in FY15 to Rs 2 lakh in FY16," says Hemant Contractor, chairman, PFRDA. This was due to the ceiling on deduction under Section 80CCD (1) being hiked from Rs 1 lakh to Rs 1.5 lakh, and an additional benefit of Rs ...