The union Budget 2024 has announced a new investment avenue in the form of the NPS Vatsalya Scheme. This scheme is designed to support long-term saving for minors. Wherein parents can open an NPS account in the name of a minor child.
Key Feature:
Early Start: Parents can save for their child’s retirement as early as infancy.
Long-term benefit: power of compounding can significantly enhance returns over a long investment horizon.
Account Conversion: on reaching adulthood, the child’s account will automatically transition into a regular NPS account.
Minimum Investment: Parents can start with a modest monthly contribution of Rs.500 or an annual contribution of Rs. 6000.
NPS vatsalya scheme is designed for long term wealth creation specially for retirement planning not for any short term planning such as higher education, child marriage etc.
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