Should You Invest In NPS Vatsalya For Your Child? Advisors Are Not So Sure
The National Pension Scheme Vatsalya, which was launched on Thursday, aims to allow Indians to invest in the government’s pension scheme on behalf of their children.
The National Pension Scheme has gained momentum over the past decade as a viable retirement option for Indians. The new scheme was launched to widen the ambit to also include minors.
But should you invest in Vatsalya? The answer could well depend on what you think your child would need the funds for. The rules that govern this investment will determine whether it is appropriate to meet your goals.
One of the most popular reasons for investing on behalf of a child is to fund their higher education. The NPS Vatsalya may not be the best option in this situation, according to Vinit Iyer, principal officer and managing director, Prudeno Wealth.
“This shouldn’t be an option because of the lack of liquidity. The options for transfer of corpus are too limiting, so this doesn’t fulfil the requirements for education,” said Iyer.