The National Pension System (NPS) is an initiative of Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by Government of India to regulate and develop the pension sector.
One can regularly invest money in this and get a lump sum at retirement and a fixed monthly income for the lifetime.
It is better option as it is cheapest when compared to current retirement products and it is also easy to transact. There is additional tax saving benefit if both employee and employers contribute
However, at the time of withdrawal, the lump sum would be taxable as per the individual's tax slab . It does not permit flexible withdrawals when compared to mutual funds.
The government has appointed six pension fund managers to manage NPS who will invest the pension fund further to generate return on investment.
Here are 6 fund managers who manages NPS
LIC Pension Fund Limited
NPS is a pension system where an investor invests throughout her/his working career and reap the benefit after retirement by withdrawing a part of the accumulated wealth and the rest invested to purchase an annuity for the investor's old age security.
SBI Pension Funds Pvt. Limited
SBI Pension Funds Private Limited SBIPFPL has also been appointed as Pension Fund Manager along with 5 others to manage the pension corpus under the Citizens Pension Scheme.
UTI Retirement Solutions Limited
UTI RSL has been set up to carry out the operations as Pension Fund as directed by the Board of Trustees of the New Pension System Trust, set up under the Indian Trust Act, 1882.
ICICI Prudential Pension Funds Management Co. Limited
ICICI Prudential Pension Funds Management Company is a fund manager for managing the funds collected under the New Pension Scheme (NPS) for Indian citizens other than government employees.
Kotak Mahindra Pension Fund Limited
Kotak Mahindra Pension Fund Ltd KMPFL has been appointed as a Pension Fund Manager (PFM) by the Pension Fund Regulatory and Development Authority ("PFRDA"), on 30th April 2009 for managing the funds under New pension System (NPS)
Reliance Capital Pension Fund Limited
Pension Fund Regulatory and Development Authority (PFRDA) has selected, through a competitive selection process, six pension funds/sponsors to manage the assets under the NPS of the citizens of India and Reliance Capital Pension Fund Limited is one of the Pension Funds selected by the NPS for the purpose.