How do I invest in a pension fund?
Ava Robinson
Published Mar 23, 2026
The following contributions are accepted by the National Pension Scheme:
- A subscriber needs to make a minimum contribution Rs. 6000 per year. The minimum one time contribution is Rs. 500.
- Similarly, for Tier-II accounts, a subscriber needs to make a minimum contribution of Rs. 2,000 annually, and Rs. 250 at one time.
How do private pension funds invest?
Pension funds are fed by the money that pension plan customers contribute every month, and that money is constantly invested. Pension funds invest in different products such as stocks and bonds, for example, and seek to maximise the return on those investments.
Which pension fund is best investment?
Best Performing NPS Tier-I Returns 2021 – Scheme E
| Pension Fund Managers | Returns* | |
|---|---|---|
| SBI Pension Fund | 19.78% | 13.54% |
| ICICI Pension Fund | 21.44% | 13.90% |
| Kotak Mahindra Pension Fund | 20.79% | 13.96% |
| LIC Pension Fund | 21.44% | 13.90% |
Can I invest in a private pension?
A personal pension is when you appoint a pension company and they choose the funds you invest in. To get a self employed pension, you can go directly to a UK pension provider. You’ll pay monthly pension contributions and they’ll choose which funds you invest in.
What happens to a private pension when you die?
Pension protection lump sum If you die within the guarantee period, a lump sum might be paid to your beneficiaries. This lump sum is usually the value of the pension payments which are due to be paid between your death and the end of the guarantee period. This is paid tax-free if you die before the age of 75.
Should I invest 50000 NPS?
If a taxpayer has exhausted the limit of Rs 1.5 lakh under Section 80C of the Income-tax Act,1961 then additional tax can be saved by investing Rs 50,000 in NPS. The deduction claimed will be over and above Section 80C deduction of Rs 1.5 lakh.
