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'Can I shift from govt NPS to individual NPS?'

October 09, 2023 09:54 IST

Do you have financial planning queries?
Please ask your questions here and rediffGURU Anil Rego, founder and CEO, Right Horizons (external link), will answer them.

rediffGURUS: Can I shift my money from govt NPS to individual NPS?

Illustration: Dominic Xavier/

Apurv: I am a retired person and I have recently sold my equity stocks.
Now I want to invest the total amount (about Rs 50-60 lakh) in mutual funds.
Is it advisable to do so for a retired person?
Should my portfolio also include equity MF or balance advantage fund will be more advisable?
I want above than FD returns over a period of three years, say about 9-10 per cent.
Please advise me on a correct mix of MF with category & names of MF which will be safe & suitable for this. TIA.

As a retired individual looking to invest a substantial amount in mutual funds, it's important to consider your risk tolerance, investment goals and time horizon.

While mutual funds can offer potentially higher returns compared to fixed deposits, they also carry a certain level of risk based on the category of funds you choose.

We suggest a combination of equity, hybrid and debt funds based on your risk appetite.

For a 9-10 per cent pre-tax return, you can have about 25-30 per cent in equity, 30-35 per cent in hybrid funds and 35-45 per cent in debt.

Within the hybrid category, you can use dynamic asset allocation funds significantly.

Within equity, you can use a combination of large cap, flexicap and midcap funds.


Pratap: I have invested in various mutual funds since 2019.
Now I have got decent profit (XIRR 17 per cent).
Latest value is around Rs 50 lakh.
These are old investments and SIPs have been stopped.
Market is at all-time high, is it right time to redeem my investment or wait?

If you do not need the money, you can keep it for the long term.

While there may be intermediate corrections, in the long term the equity markets will continue to do well if the economy does well.

You can use an advisor to help you through the journey.


Subodh: How much money should I save monthly to live happily after 75 yrs? Presently I am 55.

This will completely differ from person to person.

One way of doing it is to look at your current monthly expenses and index that for inflation.

You can arrive at the capital required by computing the present value of the future cash flows (monthly income needed).


Anonymous: Which is the best systematic investment plan for the long term?

It is very difficult to generalise without understanding your risk profile.

You can use a combination of large, mid and small cap funds -- large cap funds like Nippon India Largecap/HDFC Top 100, midcap funds like HDFC Midcap and SBI Magnum Midcap and small cap funds like Sundaram Small Cap.


R: I need to know about the shifting of government NPS to individual NPS.
In my case, I joined a state government organisation in 2013 on an ad hoc basis and the organisation opened an NPS account for me and received a PRAN.
After that, we (employee and employer) continuously made monthly contributions to my NPS account.
In March 2022, my ad hoc tenure is completed and I left the organisation.
Now I am at a different organisation where the NPS scheme is not active. Therefore, request you to kindly suggest some solution to me.
Also request to suggest whether I can keep continuing my NPS account, if yes, kindly suggest the way for that. What to do for that?
In this regard a tried a lot to know about it but still did not get any response.
I shall be grateful to you if you could kindly provide a solution to my problem.

You can continue the PRAN under the All Citizen of India sector.

You need to submit the Inter Sector Shifting (ISS-1) form to the POP-SP of your choice.

Subsequently, if you change your job and join an organisation registered under NPS, you can continue the PRAN by submitting the CS-S3 form by the corporate which you join.

Disclaimer: This advisory is meant for information purposes only. This advisory and the information in it does not constitute distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.