NPS Vatsalya: Pension plan that starts early for child's financial security

Scheme gives access to a variety of investment options but may not suit people who desire liquidity in their investments

In an attempt to promote retirement savings from an early age, the government has launched NPS Vatsalya. It is a new initiative under the National Pension System (NPS) that allows parents or guardians to build a retirement corpus for their children. They can begin investing in this scheme from the child’s infancy and continue until they become 18, after which the account will seamlessly morph into an NPS Tier-1 (All Citizens model) account.

Features

As with the NPS for adults, investors will have access to a variety of investment options. “The option to invest through auto choice