You can earn ₹11 crore by investing ₹834 per month: Invest in NPS Vatsalya scheme to secure your children's future; know the details

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Tue Jun 03 18:20:18 IST 2025
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If you're looking to build a large financial corpus for your child's future with a minimal monthly investment, the NPS Vatsalya Scheme—launched by the Government of India—could be an ideal option. By investing just ₹10,000 annually (or about ₹834 per month), your child could potentially accumulate up to ₹11 crore by retirement age.

What is the NPS Vatsalya Scheme?

The NPS Vatsalya Scheme

is a child-focused extension of the National Pension System (NPS), introduced in September last year. It allows parents to open an account in their child's name (below 18 years of age), making long-term investments for their financial security.

  • Minimum investment: ₹1,000 per year
  • No maximum limit on contributions
  • Once the child turns 18, the account automatically converts into a standard NPS Tier-1 account.
How Does the Investment Work?

The funds in this scheme are invested across government bonds, debt instruments, and equities. Parents can choose the allocation based on their risk appetite:

  • Aggressive – 75% in equities (high risk, high return)
  • Moderate – 50% in equities (balanced risk and return)
  • Conservative – 25% in equities (low risk, low return)

    • You can also opt for Active Choice to customize the equity-debt ratio as per your preferences.

    How Can It Grow to ₹11 Crore?

    If you invest ₹10,000 annually (just ₹834 per month) starting from your child’s early years and continue contributing until their retirement age (60), the corpus can grow significantly—up to ₹11 crore

    —thanks to compounding and equity market returns.

    Who Can Invest?
    • Any Indian citizen with a child under 18 years old.
    • The child must have a PAN card and Aadhaar card.
    • After turning 18, the account becomes a standard NPS Tier-1 account (with KYC updates required).
    Withdrawal Rules
    • After 3 years of investment, you can withdraw up to 25%, a maximum of three times, for reasons such as education, medical emergencies, or disability.
    • At age 18:
      • If the corpus is over ₹2.5 lakh, 80% must be used to purchase an annuity (monthly pension), and 20% can be withdrawn as a lump sum.
      • If the fund is ₹2.5 lakh or less, the entire amount can be withdrawn.
      • In the unfortunate event of the child’s death, the full amount is handed over to the guardian.
    How to Open an NPS Vatsalya Account?

    You can open an account:

    • Offline: Visit any participating bank.
    • Online: Through https://nps.kfintech.com or other official eNPS platforms.

    PC:Bhaskar

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