One can open a NPS Vatsalya account in the name of one’s child and operate it. According to rules, the child will handle the account when he/she becomes an adult at 18. But better still, he/she can continue the investments till the age of 60, when quite a massive amount will await him/her. Let’s find out the arithmetic with an NPS Vatsalya calculator.
A significant point to remember is that the sooner you open an NPS Vatsalya account, the better for your child, since you would be accumulating a lot more money with the same contribution if you start early. One can start from the first year of the kid.
Is NPS Vatsalya good or bad?
Sixty years of compounding!!! Call it a financial nuclear device, for, six decades of compounding carries no less a power – the only difference being that this power is creative while a nuclear bomb is essentially destructive. NPS Vatsalya has harnessed this gigantic power and placed it at the hands of the parents of India who can use it to create a secure financial future for their children with even small but regular contributions. Just like NPS (National Pension System), NPS Vatsalya is overseen by the Pension Fund Regulatory Authority of India (PFRDA).
How to calculate NPS Vatsalya scheme benefit
Parents can begin investing in an NPS Vatsalya scheme with a minimum sum of Rs 1,000 a month. There is no upper ceiling. Now let’s turn to an NPS Vatsalya calculator. Consider an NPS Vatsalya account being opened in the name of a child who was born on January 1, 2024. Consider the minimum investment of Rs 1,000 being invested in that account every month. The NPS Vatsalya calculator tells us that at the age of 60, these contributions will build nothing less than Rs 4,00,59,576, or more than Rs 4 crore when the kid turns 60. At the age of 18, this amount will generate 6,01,909.
Corpus with contribution of Rs 2k a month
If one can invest Rs 2,000 every month, the amount at the end of 60 years will touch Rs 8,01,19,153 or more than Rs 8.01 crore. At the age of 18, the child will have Rs 12,03,818 in the NPS Vatsalya account. This calculator assumes a 10% return on the investments down the years.
Rolled out in September this year by Union finance minister Nirmala Sitharaman, the NPS Vatsalya scheme is an excellent investment instrument to secure your kid’s future since it can allow for 6 decades of compounding. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
