NPS scorecard compares returns of equity, government bonds and corporate debt plans

The National Pension System (NPS) is a retirement savings plan with two accounts: Tier-I for primary savings and Tier-II for voluntary withdrawals. Investors can choose from various asset classes and fund managers, with a minimum deposit of Rs 500 for Tier-I. NPS offers four asset classes: Equity (Class E), Corporate Debt (Class C), Government Bonds (Class G), and Alternative Investments (Class A). Participants can select from 11 fund managers and change managers annually. The scheme is designed to support retirement savings linked to market performance. NPS has lower fund management fees compared to mutual funds. For example, a Rs 5,000 monthly investment in a mutual fund with a 2% fee could cost Rs 19 lakh in fees over 25 years, while NPS would only incur Rs 1 lakh.