View our presentation to understand the need for Retirement Planning and the best way to plan your Retirement Pension.

1. Invest today for a
comfortable tomorrow
NPS – A Govt.
of India
Initiative

2. 
Planning for Retirement Pension

3. Are you saving enough for a
comfortable retirement?
Retirement is all about getting to do things you've
always wanted to do like :
 An extra vacation or a foreign holiday
 Pursuing a hobby,sport or an art
 Maintaining the same lifestyle you currently enjoy.
But inflation eats away your purchasing
power…
For example:
Your current age is 30yrs & monthly expenses is Rs.30000.
 After 30 yrs the value of monthly expenses will be Rs.3.2
lacs, assuming inflation rate grows @ 8%.
Because of this compounding effect of inflation over time, you will lose
significant value of your hard earned savings. Invest sensibly and benefit from
the power of compounding to beat inflation.

4. 
NPS – A Govt. of India initiative

5. What is NPS? How did it start?
National Pension System (NPS) is
designed to give a way for all citizens
of India to contribute towards
Pension & enjoy pension benefits
during their old age retirement.
(NPS), is managed by the Pension Fund Regulatory and
Development Authority (PFRDA),the apex body
established by Govt. of India to regulate and develop the
pension sector in India .
 To provide old age income
 Reasonable market based returns over the long term
 Extending old age security coverage to all citizens

6. How does NPS work?
 You can subscribe to NPS by contributing
periodic sums towards your pension during
working life.
 Regular contribution will gradually
accumulate into a big corpus over the years.
 When a subscriber attains 60yrs, he/she can
use min 40% of corpus to buy Annuity & take
the balance money out as lump sum or in
installments.
 A subscriber opting to exit before 60 can keep
20% of savings & invest balance in annuities.

7. Why NPS?
 Low Cost Investment :The fixed costs & transaction
charges are lowest compared to other investment
products in today’s market.
 It is flexible: Client can choose/switch the investment
option and Pension Fund Manager and monitor their
contribution & growth.
 Tax Benefits – Individual as well as employer’s
contribution to NPS is eligible for tax exemption as per the
Income Tax Act, 1961 as amended from time to time.
 Govt. regulated: NPS is regulated by PFRDA, with
transparent investment norms and regular monitoring and
performance review of fund managers by NPS Trust.
 Reasonable market based returns over the long term.

8. Cheapest Investment Option

9. Comparison of Charges
Mutual Fund Charges*
Particulars Charges Investment Amt-100000
Asset Management Charges 1.25 1250
Auditors Fee 0.15 150
Registrar Charges 0.12 120
Marketing/Dealing/Selling Expense 0.8 800
Trustee Fees 0.11 110
Custodian Fees 0.07 70
Total Charges 2.5 2500
NPS Charges*
Particulars Charges Investment Amt-100000
Registration Charges 100 100
Transaction Charges 0.25% 250
Total 350
* Example
 NPS cost comes to around 1/6th of what a mutual fund charge
 No tax rebate for investment into mutual fund

10. NPS – Product features
Age of Entry 18yrs up to 60yrs
Types of Accounts Tier I (Non-withdrawal a/c)*
Tier II (Withdrawal a/c)
Contribution for Tier I • Min amt per contribution: Rs.500
• Min contribution per FY: Rs.6,000
• Min no. of contributions: 1 per yr
• No upper-cap of investment
Choice of any one Fund  ICICI Prudential
Manager  Kotak Mahindra
 Reliance Capital
 SBI
 UTI
Choice of any 1 Investment Active – Subscriber decides on allocating
option : Asset classes – his Pension wealth in 3 asset classes
(Equity, Debt funds, Govt. Auto Choice – Predefined allocation based
securities) on age& risk profile
* HDFC securities is currently offering only Tier-I account

11. NPS – Product features
Tier I - Withdrawal After 60yrs - At least 40% of the corpus to be
used to buy annuity & withdraw remaining funds in
Lump-sum or deferred withdrawal. Or you can Opt
for 100% annuity.
Before 60 yrs – You can keep 20% of the corpus
& invest the rest in annuities offered by insurance
companies.
Incase of Death - Option will be available to the
nominee to receive 100% of NPS pension wealth
in Lump sum.
Tax Benefits only for Individual contribution to NPS a/c is eligible for
Tier-I tax deduction under Section 80C of the Income
Tax Act 1961.
Employer contributing up to 10% of Basic salary
to the NPS account of an employee, is eligible for
additional tax exemption under Sec 80CCD (2) as
per the Income Tax Act, 1961.

12. NPS – Illustration
*Expected returns under NPS are market driven & are subject to change from time to time. Hence, there is
no guaranteed/defined amount of return.
**Your monthly Pension can be higher if one increases % of annuity from 40% to max upto 100%.

13. How to open a NPS a/c?
You can subscribe to NPS through designated POP (Point of
Presence) i.e HDFC securities Ltd.
Every subscriber of NPS will have a Permanent Retirement Account
No. (PRAN), which will be a unique no. for lifetime.
To open an NPS account :
 Download NPS subscriber application form on our website –
www.hdfcsec.com (NPS section)
 Attach
 1 Passport size photograph
 1st contribution cheque in favor of “HDFC securities Ltd – NPS”
Identity proof
Address proof
 Forward the duly filled & signed application to our nearest HDFC securities
branch or our representative can collect the application at your door stop.

14. Thank you
For any further queries, visit our
website www.hdfcsec.com or call
our customer care @39019400