FundsIndia in the News
Mint Money - 23/07/2010
Invest In NPS Online Through FundsIndia
INVESTING IN stocks and mutual funds at the click of the mouse is easy. Now you can invest online in National Pension System (NPS), too. An online investment portal, Fundsindia.com, has opened its online platform to invest in NPS at no extra cost. It has tied up with IL&FS Securities Services Ltd, a point of presence (distributor) of the NPS.
Says Srikanth Meenakshi, co-founder and director, Fundsindia.com : "We get our revenues from IL&FS since we have a revenue sharing agreement. Hence, we do not charge our investors, who wish to invest in NPS, over and above the mentioned charges."
After opening an account with Fundsindia.com, you fill up the NPS application form online, mentioning the fund manager and fund option you like.
You have three funds to choose from. One is equity (E), which is an equity index fund that replicates the portfolio of either the BSE Sensex or the NSE Nifty 50 index. You can put only half your money into this fund. The other two are fixed-income instruments other than government securities (C) and government securities (G).
The application form will also let you choose ECS (electronic clearing system) payment mode in case you want to invest a fixed amount periodically and you want an auto debit from your bank account. You can either ask Fundsindia.com to courier this form to you for your signature or can just download the form and courier it back with your identity proof, proof of address and bank details.
The portal will then process your NPS application and give you a permanent retirement account number if you are investing in the tier I account, which invests your money till you turn 60.
For subsequent payments, you will have to submit a cheque, if you haven't chosen the ECS facility. Says Meenakshi: "Currently, investors have to submit a cheque. However, going forward, we will introduce a payment gateway, which will let investors pay online directly."