NATIONAL PENSION SCHEME

 Overview

National Pension scheme (NPS) is a voluntary and defined contribution retirement saving scheme. The NPS has been designed in such a way that it provides Systematic Saving (just like SIP) during subscribers working life. It is an attempt to find a sustainable solution to provide adequate retirement income to every citizen of India.

How NPS Works

Ø  Under the National Pension Scheme, the subscribers savings is pooled in a pension fund.

Ø  These pooled funds are invested by PFRDA (Pension Fund Regulatory and Development Authority) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of Government Bonds, Bills, Corporate debentures and shares.

Ø  These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.

At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme either to purchase a life annuity from a PFRDA empanelled life insurance company or withdraw a part of the accumulated pension wealth as lump-sum, if they choose to do so.

Eligibility

All Citizens age from 18 years to 60 years of age.

NRI’s Status

Yes, NRIs are allowed to invest in NPS

Tax Status

Any subscriber to NPS would get an additional benefit of Rs.50,000 under section 80CCD (1B) which would be over and above the ceiling limit of Rs.150,000 as prescribed under section 80C.

Features of National Pension Scheme

National Pension Scheme offers a range of investment options and choice of Pension Fund Manager for planning and growth of investments in a reasonable manner and watch your money growth. Subscriber have the liberty to switch over from one fund to another or from one fund manager to another. The investment and returns are market related and work like mutual funds.

Subscriber enjoys the flexibility to choose between eight fund managers (one fund manager to be selected compulsorily ) mentioned as below :

 

1.    HDFC Pension Management Co Ltd.

2.    ICICI Prudential Pension Fund Management Co. Ltd.

3.    LIC Pension Fund Ltd.

4.    Kotak Mahindra Pension Fund Ltd.

5.    UTI Retirement Solutions Ltd.

6.    SBI Pension Funds Pvt. Ltd.

7.    Reliance Capital Pension Funds Ltd.

8.    Birla Sunlife Insurance Co. Ltd.

 

 A subscriber must choose between active choice and auto choice for distribution of his contribution. If active choice is selected, the subscriber must indicate the percentage distribution between corporate , gilt and equity. The maximum investment allowed in equity is 50%.

PRAN

Account opening in NPS is simple which provides a Permanent Retirement Account Number (PRAN) , which is unique number and it remains with the subscriber throughout his lifetime. The scheme is structured into two tiers :-

1.    Tier-I Account : This is non withdrawal Permanent Retirement Account in which the accumulations are deposited as per the option of the subscriber.

2.    Tier-II Account : This is a voluntary withdrawal account which is allowed only when there is an active Tier I Account in the name of the subscriber. The withdrawals are permitted from this account as per the needs of the subscriber.

NPS Withdrawal

·        The subscriber wishing to exit from NPS has to submit a Withdrawal Application Form to the concerned Point of presence (POP) along with the documents specified below for withdrawal of benefits  
Following documents are required to be submitted along with the withdrawal forms in order to settle the claims:

1.    PRAN card in original

2.    Attested copy of proof of identity (e. g. Passport, Aadhar Card, PAN Card, valid Driving License, Voter ID Card etc.)

3.    Attested copy of proof of address (e. g. Passport, Aadhar Card, Valid Driving License, Voter ID Card etc.)

4.    Cancelled cheque (containing Subscriber Name, Bank Account Number and IFSC Code) or Bank Certificate containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.

·         The POP would authenticate the documents and forward them to Central Record-keeping Agency (CRA) the National Security Depository Limited (NSDL).

·         CRA in turn would register the claim and forward the necessary application form along with the procedure to be followed and documents that need to be submitted.

·         Once the documents are received, CRA processes the application and settles the account.

 

Dr. Sanjay Mittal

9592800921

shsanjay.mittal@gmail.com 

PERSONAL ACCIDENT INSURANCE PLANS

  

Accidents can occur any time to any person and can result in various implications causing death or disablement of the concerned. In all the scenario it affects an individual’s financial position. In the case of death the income of the affected family stops and in case of disablement the same also happens. Although none can prevent accidents or accidental injuries but we can have some financial plan in place by purchasing accidental insurance policy so that in case of any untoward incident one can have financial plan and backup in place. Let’s understand what all is covered in accidental insurance policies .

 What is covered : -

 Physical loss to an individual due to an accidental injury ( including fatal)

 Who can be insured

 Any individual or group of individuals ( through employer association and institution and thorough group policy etc) aged between 12 and 70. Subject to medical examination at 70 years a person can be covered up to 80. 

 What will policy pay and the quantum of payment

 When an accidental injury happens the sole and direct cause results ( during the period of insurance) in:

 

Death	100 % of Sum Insured
Permanent Total Disablement	100 % of Sum Insured
Loss of two limbs/ Two eyes or one limb and one eye	100 % of Sum Insured
Loss of one limb or one eye	50 % of Sum Insured
Permanent Partial Disablement	Varying % of Sum Insured as per policy
Temporary Total Disablement	1 % of Capital Sum Insured per week Subject to a maximum of Rs 3000 per week for a maximum period of 100 weeks

 On payment of extra premium medical expenses incurred up to 25 % of claim or 10 % of Sum Insured can be covered.

 Policy also pays for education fund for dependant children (2) of deceased insured and expenses of carriage of dead body of insured from accident site ( as per details in policy)

 Attractive cumulative bonus at the time of renewal by way of increasing the Sum Insured by 5 % for each completed claim free year of insurance ( maximum of 50 % sum assured ) without collecting extra premium as per policy.

 Disclaimer : - These benefits mentioned above may vary from company to company. You are supposed to get analyzed at your own with the company while purchasing personal accident insurance policy.

 Now let’s understand few terms used above :-

 Permanent Total Disability (PTD) : -

 Permanent total disability is the situation when due to a serious injury , a person is unable to work in their own or any other occupation for which they are involved. This is a condition when an individual is no longer able to work due to various injuries. Permanent Total Disability is a situation when an individual may never able to work again during it’s life span.

 Permanent total disability may involve an individual’s loss of limbs. An individual can get himself insured against PTD through personal accident insurance policy. The amount of benefit is a fixed percentage of policy holders average earnings or can vary company to company and policy to policy.

 Permanent Partial Disability (PPD) : -

 Permanent partial disability is a situation when an employee or a wage earner is permanently not able to work at full physical capacity due to injury occurred due to accident. A benefit is paid in such situation due to complete or partial loss of body. Loss of use means when an employee or a wage earner is not able to use the specific body part which he or she was using before accidental injuries. Few examples of permanent partial disability are :

. hearing loss

. loss of vision in one eye

. knee injury

. removal of a body part like a finger or a hand or a foot.

. damage in nervous system.

 Temporary Total Disability (TTD) : -

 Temporary total disability benefits are given to those employees or wage earner who are not able to work for a period of time due to accidental injuries. These benefits are stopped when the temporary disability is cleared and the person starts working again. Temporary total disability is a injury which does not result in death or permanent total disability but the injured person is not able to perform his or her regular duties or the given job. Benefits are paid to the affected person till the time he or she return to work and resume the duty or job.

 

 Dr SANJAY MITTAL

B.Com,  MBA (Finance)

CAIIB,  PGDCA

PG Wealth Management

Senior Banker and Financial Analyst

9592800921

Shsanjay.mittal@gmail.com

निश्चित परिपक्वता योजनाएं (FMPs)

 

निरंतर काम होते ब्याज दरों के दौर में सबसे बड़ा प्रश्न निवेशक के लिए यह है के वह अपने पैसे को कहाँ निवेश करे ताकि वह एक अच्छे ब्याज के साथ तरलता और सुरक्षा भी प्राप्त  कर सके।  ऐसे निवेशकों के लिए नियत परिपक्वता योजना यानि की F M P एक बेहतर विकलप है।

 

निश्चित परिपक्वता योजनाएं निश्चित परिपक्वता तिथि के साथ समाप्त ऋण योजनाएं हैं। वे डेबिट और मनी मार्केट इंस्ट्रूमेंट में निवेश करते हैं जो योजना की परिपक्वता की तारीख से पहले या उससे पहले परिपक्व हो जाते हैं। चूंकि एफएमपी ऋण योजनाएं हैं, इसलिए कॉर्पस को निश्चित आय प्रतिभूतियों और ऋण योजनाओं में निवेश किया जाता है। कार्यकाल एक महीने से तीन साल तक विभिन्न परिपक्वताओं का हो सकता है। FMP  प्लान एक निश्चित समय में बंद हो जाते हैं और NFO (न्यू फंड ऑफर) के बंद होने के बाद किसी भी निवेश को स्वीकार नहीं करते हैं। FMP आमतौर पर डिपॉजिट सर्टिफिकेट (CDs), कमर्शियल पेपर्स (CPs), मनी मार्केट इंस्ट्रूमेंट्स, अत्यधिक परिभाषित सिक्योरिटीज (जैसे 'AAA' रेटेड कॉरपोरेट बॉन्ड्स) में परिभाषित निवेश कार्यकाल से अधिक निवेश करते हैं। कभी-कभी वे बैंक फिक्स्ड डिपॉजिट में भी निवेश करते हैं। वे इक्विटी में निवेश नहीं करते हैं।

एफएमपी के लाभ:

कैपिटल प्रोटेक्शन: चूंकि एफएमपी डेट और मनी मार्केट इंस्ट्रूमेंट्स में निवेश करते हैं और इक्विटी 

में निवेश नहीं करते हैं, इसलिए इक्विटी की तुलना में कैपिटल लॉस में बहुत कम जोखिम होता है।

ब्याज दर की अस्थिरता: प्रतिभूतिओं को maturity की तारीख तक रखा जाता है ताकि FMP 

ब्याज दर की अस्थिरता से प्रभावित न हों।

टैक्स बेनिफिट्स: फिक्स्ड डिपॉजिट्स के साथ-साथ लिक्विड और अल्ट्रा शॉर्ट टर्म डेट फंड्स की 

तुलना में FMPs बेहतर रिटर्न देते हैं क्योंकि वे इंडेक्सेशन बेनिफिट्स ऑफर करते हैं। इंडेक्सेशन

 कैपिटल गेन को कम करने और टैक्स को कम करने में मदद करता है।

 कम लागत: इक्विटी की तरह इन उपकरणों को अक्सर खरीदा और बेचा नहीं जाता है और 

maturity की तारीख तक रखा जाता है ताकि लागत बचत एफएमपी में स्पष्ट रूप से हो।

 FMPs कैसे काम करते हैं:

 एफएमपी पोर्टफोलियो में में एक समान maturity तारीख वाले प्रतिभूतिओं को शामिल किया जाता है .

 एफएमपी के कार्यकाल के आधार पर, एक फंड मैनेजर इस तरह से उपकरणों में निवेश करता है कि 

सभी एक ही समय में परिपक्व (mature) हो जाते हैं। योजना की अवधि के दौरान, योजना की सभी 

इकाइयाँ तब तक आयोजित की जाती हैं जब तक कि वे एक निर्धारित तिथि पर परिपक्व नहीं हो 

जाती हैं। इसलिए निवेशक को योजना की वापसी की सांकेतिक दर मिलती है।

एफएमपी तरल हैं?

एफएमपी बंद होने वाले फंड केवल सूचीबद्ध होने पर स्टॉक एक्सचेंज में कारोबार कर सकते हैं। इन 

उपकरणों में बहुत ही नगण्य व्यापार उन्हें तरल नहीं बनाता है। इन खुले समाप्त ऋणों की तुलना में

 दैनिक आधार पर खरीदा और बेचा जा सकता है।

नामांकन:

एफएमपी में नामांकन किया जा सकता है और निवेशक की मृत्यु के मामले में आवश्यक दस्तावेज

 के पूरा होने पर नामित नामित को देय राशि देय है। यह राशि कानूनी वारिसों के लिए देय है,

 जहां नामांकित व्यक्ति नियुक्त नहीं है।

योग्य निवेशक: सभी भारतीय निवासी।

न्यूनतम निवेश: रु। पांच हजार

कार्यकाल: 15 दिन से 30,91,141,180 और 365 दिन। कुछ योजनाओं में तीन से पांच साल की समय सीमा होती है।

रिटर्न की दर: कोई निश्चित रिटर्न FMP पर नहीं है।

समय से पहले वापसी: एफएमपी के मामले में संभव नहीं है।

 

डॉ संजय मित्तल

सीनियर बैंकर एंड

डॉक्टर ऑफ़ मैनेजमेंट

1119 , मॉडल टाउन , फेज 3

बठिंडा (पंजाब) – 151001

Mobile 95928 00921

Shsanjay.mittal@gmail.com