- Date : 06/12/2022
- Read: 2 mins
NPS-II account portfolio of leading fund managers
The National Pension System (NPS) is a retirement-oriented saving scheme that invests in market-linked securities. By investing in the NPS scheme, you can invest in the capital markets and create an inflation-adjusted retirement corpus for your golden years.
The NPS scheme has two types of accounts – Tier I and Tier II. A tier I account is mandatory for all NPS subscribers. To invest in the NPS scheme, you must open a Tier I account. The account is rigid and offers limited withdrawals.
Tier II account, on the other hand, is very flexible as it allows easy withdrawals. However, you can only open the account when you have a Tier I account. The investment features of a Tier II account are as follows –
- There are three different funds to invest in – Equity (E), Corporate debt (C) and Government bonds (G).
- Central Government employees have one more fund option called the scheme tax saver fund.
- The fund management fees are limited to 0.09%, which is very low compared to direct equity mutual fund schemes.
- The equity portfolio of the Tier II account primarily invests in the top 200 companies of the stock market.
Related - Find out how to open an NPS account.
Portfolio composition of Tier II account equity fund
Here’s a look at the portfolio composition of the equity fund of Tier II accounts across leading fund managers –
Aditya Birla SL Pension Tier II Scheme E
HDFC Pension Tier II Scheme E
ICICI Prudential Pension Tier II Scheme E
Kotak Mahindra Pension Tier II Scheme E
LIC Pension Tier II Scheme E
Do you own any of these stable stocks in your portfolio?
You can pick these stocks as leading fund managers favour them. You can also invest in the NPS scheme for building a retirement corpus.
Related - NPS charges hiked. Know the latest charges
Check this video for the best investment funds in the NPS scheme
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
