Secure Your Retirement with right balance asset mix
The Surakshit Income Fund Tier I is a balanced pension scheme under the Multiple Scheme Framework (MSF) of the National Pension System.
This fund is suited for individuals who prefer a measured approach to wealth creation. These are typically those who wish to participate in the long-term growth of equities while maintaining the comfort of debt-backed stability.
The Surakshit Income Fund Tier I combines stability and controlled growth through a carefully balanced structure. Allowing investors to choose between retirement-focused savings and voluntary contributions.
Tier I (Retirement-Focussed):
Tier I is a dedicated, long-term savings account created specifically for retirement. Contributions to this account help investors accumulate wealth over time. For corporate NPS subscribers, the vesting period remains until superannuation or retirement, while for individual subscribers, it is 15 years.
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The Surakshit Income Fund Tier I follows distinct asset allocation strategy.
Tier I – Retirement-Focussed
The Surakshit Income Fund Tier I’s balanced structure allows capital appreciation through equity exposure while safeguarding against volatility with government and corporate bonds.
Other key benefits include the following.
Please Note: Past performance is not indicative of future results. NPS returns are market-linked.
To ensure performance transparency and measurable outcomes, each plan under the NPS Surakshit Income Fund Tier I is benchmarked against carefully selected market indices. These benchmarks reflect the fund’s investment mix and serve as reference points for evaluating returns.
Tier I Composite Index*
The Tier I portfolio is benchmarked against a mix of equity and fixed-income indices to mirror its balanced approach. BSE 200 TRI (65%) represents the equity component and tracks the performance of large- and mid-cap stocks. NPS Government Securities Index (25%) reflects the stability of sovereign bonds. NPS Corporate Bond Index (10%) captures returns from high-quality corporate debt.
*- Subject to approval from regulator – PFRDA
NPS Surakshit Income Fund Tier I focuses on retirement accumulation with structured exit norms.
NPS Surakshit Income Fund Tier I is built for long-term wealth creation. Upon reaching superannuation or the 15-year vesting period, non-government subscribers with a corpus above ₹12 lakh may withdraw up to 80% of their total corpus, as a lump sum or through the Systematic Lumpsum Withdrawal (SLW) facility.
The remaining 20% must be utilised to purchase an annuity. If the total corpus is ₹8 lakh or less, a 100% lump sum withdrawal is permitted. In the unfortunate event of the subscriber’s death, 100% of the corpus is paid to the nominee or legal heir.
Flexibility is a key aspect of the NPS Surakshit Income Fund Tier I. Investors are allowed to switch from common schemes to the Multiple Scheme Framework (MSF) to align with their changing financial objectives.
Transparency and cost efficiency remain at the heart of the Surakshit Income Fund structure. The fund-management fee is capped at 0.30% of Assets Under Management (AUM) per annum, in line with PFRDA regulations.
Additional charges for the Central Recordkeeping Agency (CRA), Custodian, and NPS Trust services are nominal and disclosed regularly.
Investments in the Surakshit Income Fund under NPS qualify for attractive tax deductions under the Income-tax Act, 2025. These benefits apply differently to salaried employees and self-employed individuals.
Deduction up to 10 % of salary (Basic + DA) under Section Section 124(1)6 of the Act within the overall ceiling of ₹1.50 lakh under Section Section 1234 of the Act.
Additional deduction up to ₹50,000 under Section Section 124(3)1 of the Income-tax Act, 20252 over and above the ₹1.50 lakh limit under Section Section 1234 of the Act.
Employer contributions are eligible for deduction up to 14 % of salary (Basic + DA), for all employees, under Section Section 124(1)3 of the Act. This benefit is available over and above the overall ₹1.50 lakh ceiling under Section Section 1234 of the Act.
Deduction up to 20% of gross income under Section Section 124(1)6 of the Act within the overall ceiling of ₹1.50 lakh under Section Section 1234 of the Act.
Additional deduction up to ₹50,000 under Section Section 124(3)1 of the Income-tax Act, 20252, over and above the ₹1.50 lakh limit.
Disclaimer
Income-tax Act, 2025 – corresponding Income-tax Act 1961
Section 123 read with Schedule XV of the Income-tax Act, 2025 – corresponding Section 80C and 80CCE of the Income-tax Act, 1961
Section 124(1)6 of the Act – Corresponding Section 80CCD(1) of the Income-tax Act, 1961
Section 124(3)1 of the Income-tax Act, 20252 – Corresponding Section 80CCD(1B) of the Income-tax Act, 1961
Section 124(1)3 of the Act – Corresponding Section 80CCD(2) of the Income-tax Act, 1961
Section 1234 of the Act – Corresponding Section 80CCE of the Income-tax Act, 1961
The NPS Surakshit Income Fund stands out as a balanced pension scheme that merges growth potential and capital preservation. It caters especially to self-employed individuals, digital professionals, and conservative savers.
By combining equity exposure with corporate and government bonds, the fund reduces risk while providing the opportunity for gradual wealth creation. It also benefits from professional fund management and strict oversight by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring transparency and reliability.
For those looking to invest in NPS through a plan that supports both stability and measured growth, the Surakshit Income Fund by HDFC Pension offers a well-rounded, long-term solution.
It’s never too early, or too late, to plan for financial security. The NPS Surakshit Income Fund’s balanced approach within the Multiple Scheme Framework provides the right mix of growth, stability, and flexibility for every kind of investor. To learn more or begin your investment journey, visit HDFC Pension and open your NPS account online today.
