Introducing National Pension System (NPS) on the MyWay Wealth app!

Now invest in NPS on the MyWay Wealth app and save more taxes!

Secure our future with MyWay app

Dear Customer,
We are glad to introduce a brand new product on the MyWay Wealth app – National Pension System. Now you can invest in NPS on the MyWay Wealth app without any paperwork in a completely digital manner!

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Now invest via UPI on MyWay Wealth

We wanted to share an exciting update with you. In our effort for making the payment experience superior, we have introduced UPI as a payment option on MyWay Wealth. Here is how it works:

  • Install MyWay Wealth app, finish paperless KYC in 5 minutes and choose Top Rated Mutual Funds to invest in.
  • You need to have a VPA (Virtual Payment Address) for your bank account. Once you choose UPI as a payment option, you will be promoted to enter your VPA.
  • A payment request will be sent to your native UPI app (e.g. BHIM, Google Pay, any bank’s UPI app, etc.) and you will receive a notification about the payment request.
  • Pay from the UPI App and return the MyWay Wealth app.
  • Your transaction is successful and you can track the same in the reports section.

We know the value of hard-earned money, and we guarantee absolute peace of mind on your purchases. Signup now to start investing in Direct Mutual Funds, Term Insurance and National Pension System (NPS).

Happy investing!

Reasons to invest in Mutual Funds!

1. Expert advice

The Mutual funds you invest in are taken care of by Experts, who make instant changes in your scheme as per changing trends in the market. Thus you can easily review the growth in your investment.

2. Close Supervision

  • The Companies that deal with your investments are closely monitored by SEBI. Such strict regulations compel companies to make necessary disclosures at regular intervals.

  • Even online platforms, such as MyWay Wealth, require you to complete KYC (Know Your Customer) compulsorily to ensure safety of your investments.

3. Wide range of options:

Your risk appetite is unique and hence Mutual funds provide various funds like: Balanced funds, equity mutual funds, monthly income plans, income funds, and liquid funds to meet your investment goal.

4. Reduces risk

Mutual funds provide you broad exposure to various stocks such as bonds, shares, equities, etc that are carefully selected by professionals further reducing your burden.

5. Liquidity

Mutual funds allows your to convert your investments into physical cash to meet your immediate needs incases of emergency, within 1-3 days.

6. Low Costs:

The transactions costs charged by Direct Plan mutual funds are relatively cheaper than other investments. Install MyWay Wealth, which is a Direct Plan mutual fund investment app to start investing.

7. Planned Investing

Mutual funds help you to maintain a disciplined lifestyle instead of trading based on your fear or greed in the stock market directly, thereby encouraging long term investments.

8. Smaller investments

You can start investing in mutual funds with just Rs. 500.

9. Flexibility

Mutual funds provide you two investing options: regular deposits (SIP) or lump-sum payments.

10. Tax Benefits

Mutual fund provide tax advantages, that you get more profits.

11. Available on apps

You can make investments in mutual funds with just a few clicks using your smartphone. These platforms give advice, track and provide alerts on your investment plans. And its simplified as it is completely paperless.

12. Higher Returns

Since Mutual funds are linked to stock markets you can earn higher returns and beat high prices when compared to traditional instruments such as Fixed Deposits.

If 12 reasons couldn’t convince you to invest in mutual funds, I don’t know what will! Signup now to start investing:

Accomplish more with MyWay Wealth’s Advanced Research Reports!

We are excited to announce the launch of our newest feature – Advanced Research ReportsThese reports are the perfect companion for investors to take a well-informed decision, and make the best returns from investments.

Key highlight:
Portfolio Analysis

  • Detailed analysis of the fund’s portfolio and sector exposure.
  • Check out top holdings and more.

Performance Analysis

  • Return analysis across multiple investment periods.
  • Index VS Fund Growth

Risk Analysis

  • Category Risk and Return matrix
  • Various other risk indicators like alpha, beta and more.

We hope that you will like this new feature of your MyWay Wealth app, and make the best out of it. Click here to download MyWay Wealth app to start investing in Direct Mutual Funds, Term Insurance and National Pension System (NPS).

Alternatively you can signup online to start investing:

Advanced Research Report

ZERO COMMISSION. ZERO FEE. ZERO PAPERWORK.

 

 

 

Be the perfect Santa to your family! Act NOW!

Be the Santa to your family

Why one should invest in SIP through MyWay?

Fund recommendation engine:

Invest in Funds which have constantly outperformed market.

Real-time tracking:

Track/monitor your investments with a click of a button anytime, anywhere.

Portfolio Rebalancing:

Get your risk covered by periodically balancing your portfolio.

Do-It-Yourself:

You can invest in over 5,000 direct plans in your own way.

If you have any concern, please write to us at ask@mywaywealth.com or call at +918048039999, we would be happy to answer your query.

Team MyWay wishes you Happy New Year 2019!

MyWay Team wished you great new year.

Why one should invest in SIP through MyWay?

Fund recommendation

Fund recommendation engine:

Invest in Funds which have constantly outperformed market.

Real-time tracking

Real-time tracking:

Track/monitor your investments with a click of a button anytime, anywhere.

Portfolio Rebalancing

Portfolio Rebalancing:

Get your risk covered by periodically balancing your portfolio.

Do-It-Yourself

Do-It-Yourself:

You can invest in over 5,000 direct plans in your own way.

So, what are you waiting for? Signup now to start investing:

If you have any concern, please write to us at ask@mywaywealth.com or call at +918048039999, we would be happy to answer your query.

Are you concerned about the 3Ss of your investment? Secure, Safe & Smart!

Money growth in your secured platform

People often hesitate to invest on digital platforms because of security and trust issues.

Don’t worry, investing with MyWay Wealth is 100% safe and secure.

Here is how we ensure safety and security:

  • 256-bit Secure Socket Layer (SSL) encryption
  • All payments are routed via BillDesk (PCI – DSS Compliant)
  • All orders are executed via Bombay Stock Exchange (BSE)
  • MyWay Wealth is a SEBI registered Investment Advisor (INA200005323)

Also, we have built smart fund recommendation to suit your investment goals and style.

The complete digital platform makes investment very simple and you can start right away. To begin with, you would need

  • PAN Number
  • Date of Birth

It would hardly take 30 seconds to complete the first step. What are you waiting for? 

Don’t let your money go, let it grow!

Dear Customer,

Time becomes more precious when it comes to investments for the future. Don’t delay, here are 4 good reasons why you shouldn’t delay mutual fund investments.

1. Risk Horizon

Higher the risk, higher the return, so better to start young when you have a large appetite for risk.

2. Cost of Delay

Each month delay in a monthly SIP of Rs 10,000 (for 30 years) could cost 2 Lakh per month. (CAGR ~ 18%*).

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Frequently Asked Questions (FAQs) on National Pension System (NPS)

  1. What is NPS?

National Pension System (NPS) is an investment cum pension scheme initiated by the Government of India to provide old age security and pension of all citizen of India. The NPS was rolled out for all citizens of India on May 01, 2009. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA)

  1. Who can subscribe to NPS?

A citizen of India, whether resident or non – resident can join the NPS subject to the following conditions:

  • Subscriber should be between 18 – 65 years of age as on the date of submission of her application
  • Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form for NPS
  1. How does the Scheme work?

The scheme is based on a unique Permanent Retirement Account Number (PRAN), which is allotted to each Subscriber upon joining. Subscriber contributes towards NPS (directly or through the employer she is working with) during her working life. On retirement or exit from the scheme, the Corpus is made available to her with the mandate that some portion of the Corpus must be invested into Annuity to provide a monthly pension post retirement or exit from the scheme

  1. What are different types of NPS Account?

Under NPS, Subscriber gets the option to open two accounts. A Tier I account is mandatory to open in order to join NPS. Difference between Tier I and Tier II accounts are as mentioned below:

 Tier I NPS Account Tier II NPS Account

  • It is also known as Pension account. All investments for tax savings happens in this account only.
  • Withdrawal from this account restricted
  • Minimum annual contribution required for this account is Rs.1,000
  • It is known as investment account
  • Withdrawal from this account can be done at any point of time as per Subscriber’s need
  1. What are entry and exit age under NPS?
ParticularsMinimumMaximum
Entry Age18 years65 years
Exit Age fter 10 years of Account opening70 Years
  1. Can a Subscriber open more than one NPS account?

No. In the entire life span, Subscriber will be allowed to open only one NPS Account. The NPS Account number, which is also called PRAN, is fully portable across job and geography

  1. Is there any restriction on the frequency of contribution?

There is no restriction in terms of frequency of contribution. The subscriber has the option to make the contribution in any mode – monthly, quarterly, half-yearly or yearly. Subscriber can make ad – hoc contribution as well

  1. Can Subscriber increase or decrease the contribution amount in subsequent years?

Yes, NPS offers this flexibility. Subscribers are allowed to alter the contribution amount as per the suitability. However, this is restricted to the Subscriber’s own contribution. For Employer’s contribution, this flexibility depends on the Employer’s policy

  1. Does Subscriber get any alert on credit of contribution amount to his / her NPS accounts?

Yes, once the contribution is credited to Subscriber’s NPS account, an email alert as well as a SMS alert is sent to the registered email ID and mobile number of the Subscriber

  1. What happens if the minimum annual contribution of Rs.1000 is not invested in Tier – I NPS Account?

In case the Subscriber fails to contribute minimum Rs.1000 per annum in Tier – I NPS Account, the PRAN is frozen. Once the PRAN is frozen, Subscriber is not allowed to do any transaction (financial / non – financial) in both – Tier – I and Tier – II NPS Accounts

  1. What is the process of unfreezing the PRAN?

Subscriber needs to contribute minimum Rs.500 through portal to unfreeze the NPS Account

  1. How the funds going to be invested under Subscriber’s NPS account?

      NPS offers 4 funds to Subscribers

  • Equity (E)
  • Corporate Bonds (C)
  • Government Securities (G)
  • Alternate Investment Funds (A)

NPS restricts investment towards Equity and Alternate Investment Funds to 75% and 5 % of contribution amount respectively for both Tier I and Tier II NPS Accounts. However, Subscriber can invest up to 100% in Corporate Bonds or Government Securities Fund. Investment across three funds will be managed by HDFC Pension Management Company Limited

  1. How does the investment happen across three funds under Auto choice?

Investment across 3 funds will be done in a life cycle fund. Under this option, investment across Equity, Corporate Bonds and Government Securities is done as per the age of the Subscriber in below three life cycle funds:

  • LC- 75 Aggressive Life cycle Funds
  • LC- 50 Moderate Life cycle Funds
  • LC- 25 Conservative Life cycle Funds

Illustration of LC – 50 Moderate Life Cycle Funds is state as per below chart:

Age of the Subscriber Equity Corporate Bonds

Government Securities

  • < = 35 Yrs 50% 30% 20% 36 48% 29% 23% 37 46% 28% 26% 38 44% 27% 29% 39 42% 26% 32% 40 40% 25% 35% 41 38% 24% 38% 42 36% 23% 41% 43 34% 22% 44% 44 32% 21% 47% 45 30% 20% 50% 46 28% 19% 53% 47 26% 18% 56% 48 24% 17% 59% 49 22% 16% 62% 50 20% 15% 65% 51 18% 14% 68% 52 16% 13% 71% 53 14% 12% 74% 54 12% 11% 77%
  • > = 55 Yrs 10% 10% 80%
  1. How the above fund allocation chart works under Auto Choice Investment option?

The first allocation is made as per the age of the Subscriber at the time of joining the Scheme as shown in the chart. For example, if the entry age of Subscriber is 42 years, her allocation towards E, C and G would be 36%, 23%, and 41% respectively. On the next date of birth of the Subscriber, the portfolio will be re-aligned as per the next level chart i.e. for the age 43. The realignment of a portfolio is system driven

  1. What are the tax benefits available to Subscribers for contribution under the corporate model?

Under NPS corporate model, Subscriber gets the following tax benefits on contributions

Tax Benefit on investment Tax Treatment on exit

Tier I

  • • Investment up to 10% of Salary (Basic + Dearness Allowance) routed through the Employer, is deductible from taxable income u/s 80CCD (2) of Income Tax Act, 1961 which is over and above Rs. 1.5 lakhs limit of section 80C
  • Additionally, investment up to Rs.50,000 is deductible from taxable income u/s 80CCD (1B) of Income Tax Act, 1961
  • Amount withdrawn in lump sum is exempt from tax to the extent of 40%* of total Corpus
  • Amount invested in Annuity is fully exempt from tax
  • Balance amount if invested in to Annuity is exempt from tax. If the amount is withdrawn, it will be taxable in the hands of Subscriber
  • Pension received out of investment in Annuity is treated as income and will be taxed appropriately

Tier II

  •  No tax benefit Capital gain tax will be applicable

Note: *As per the recent announcement by Finance Ministry, the entire corpus withdrawal in lump sum i.e. 60% would be made Tax Free from the commencement of next F.Y (F.Y. 19-20)

15. What are the charges under NPS and how these charges are levied?

There are various intermediaries involved under NPS. The charge for these intermediaries is regulated by PFRDA. Below are the details of charges under NPS (exclusive of GST)

Intermediary Charge Head Charge# Mode Deduction of POP

Registration Charge Rs.200 To be collected up Contribution Processing Charge* 0.25%

front / deducted Non – Financial Transaction Processing Charge Rs.20

from contribution amount Persistency Charge# Rs.50 Account Opening Charge CRA (NSDL)

Transaction Processing Charge Annual Maintenance Charge Rs.40

Rs.3.75 Rs.95

Through cancellation of Units

Account Opening Charge CRA (Karvy)

Transaction Processing Charge Rs.39.36

Rs.3.36

at the end of the Calendar Quarter

Annual Maintenance Charge Rs.57.63 PFM Fund Management Charge Custodian Security Deposit Charge NPS Trust** Trust Management Charge 0.01% 0.0032%

0.005%

Through deduction NAV

*subject to minimum Rs.20 and maximum Rs.25000 per PRAN per Transaction

**GST is not applicable on Trust Management Charge

#Applicable on Retail active accounts after first financial year

  1. Does Subscriber need to pay POP charges over and above the contribution amount?

No, the POP charges would be deducted from the Contribution amount

  1. What is meant by Non – Financial Transaction?

Transactions like change of address, nominee details, Intersector shifting, etc are called non – financial transactions

  1. How is the Non – Financial Transaction Charge recovered by POP?

Subscriber needs to pay Service charge of Rs.20 + GST by Cheque at the time of submitting request for processing any non – Financial transaction

  1. Does Subscriber need to open a new NPS account if she is already having one?

No, Subscriber does not need to open a new NPS account. Subscriber will need to shift the existing account to Corporate NPS account by submitting Inter Sector Shifting (ISS – 1) form along with Service Charge of Rs. 20 + GST to POP representative along with self-attested copy of PRAN Card

  1. Can a Subscriber change / modify data in the NPS system after joining NPS?

Yes. Subscriber needs to submit the request along with the Service Charge of Rs. 20 plus GST as applicable to POP-SP representative for initiating the modification

  1. Can a Subscriber request for a duplicate PRAN Card?

Yes. In case of loss or damage of PRAN Card, the Subscriber needs to submit a duly filled S2 form to the POP for issuance of duplicate PRAN Card. Rs.40 plus applicable GST will be deducted by CRA for issuing duplicate PRAN

  1. Does Subscriber get any physical statement for NPS account?

Yes, an annual statement containing details of the unit holdings is issued by CRA to Subscriber’s registered address within 3 months of the end of every financial year

  1. Is partial withdrawal allowed from Tier I NPS Account?

Yes. Subscriber can withdraw up to 25% of contributed amount towards Tier – I NPS Account after 3 years of NPS account opening. Additionally, Subscriber is allowed to withdraw from Tier I NPS account twice in the entire tenure of NPS account hold

  1. What are the conditions of partial withdrawal?

Withdrawal from Tier – I NPS account would be permitted for specific purposes like Child’s marriage, higher education, buying home, treatment of critical illnesses etc.

  1. When can a Subscriber exit from NPS?

Subscriber can exit from NPS after 10 years or attainment of superannuation age (retirement age) defined by the corporate whichever is earlier

  1. How the payout happens if a Subscriber exists from NPS?

Primary objective of Tier – I NPS Account is to create a Corpus, which can be used at the time of retirement to buy pension for the Subscriber / Nominee. Hence, there is a restriction imposed on lump sum amount accessible to Subscriber on exit as mentioned below:

Exit before Superannuation age defined by the Corporate

Exit at Retirement age defined by the Corporate

  • Up to 20% of Corpus can be withdrawn in lump sum
  • Balance amount needs to be invested in Annuity
  • If the Corpus is less than or equal to Rs.1 lakh, there is no need to invest into Annuity. Entire amount can be withdrawn in lump sum
  • Up to 60% of Corpus can be withdrawn in lump sum
  • Balance amount needs to be invested in Annuity
  • If the Corpus is less than or equal to Rs.2 lakhs, there is no need to invest into Annuity. Entire amount can be withdrawn in lump sum
  1. Is it mandatory to withdraw the amount immediately at the time of exit from NPS?

In case of exit from NPS on retirement age defined by the Corporate, Subscriber can defer the withdrawal option till 10 years depending on the market condition. Subscriber can withdraw this amount either in lump sum or take the same in a phased manner with maximum 10 installments before attaining the age of 70 years.

However, in case of pre – mature exit from NPS (before attaining the age of 60 years), Subscriber does not have the deferment option

  1. What happens to the funds if Subscriber opts to defer the withdrawal (after the

retirement age defined by the Corporate)

The fund would continue to remain invested. The Pension Fund Manager, Scheme Preference and Asset Allocation Pattern will remain the same as they were at the time of vesting

  1. In case the Subscriber opted for withdrawal from Tier – I NPS Account before the age60, at what age annuity will start?

In case of pre-mature withdrawal, Subscriber needs to invest in Annuity immediately. Depending on the Annuity Plan he / she has invested in, annuity would start

Retirement Plan

Pension or Annuity for your retirement corpus?

Pensions and annuities are two great kinds of retirement income. But don’t confuse one with the other. They are two different instruments with their own advantages and disadvantages. Let us see what they are and which one would be more appropriate.

What is a Pension?

It is a type of retirement account which is mandatory for Government employees but is also recommended for private-sector employees to secure their retired life. The fund is opened and maintained with regular contributions throughout employment.

Some companies offer pension to their employees as part of the job (Employees’ Provident Fund or EPF) while others can voluntarily opt for other pension schemes (PPF/ NPS). In the case of private sector employees, the employer manages the contributions and payouts, which is one less worry on your end. Even if the company suddenly goes bankrupt, the Pension Benefit Guaranty Corporation will try and get you your pension as much as they can. You may not get the entire amount but you will still have most of it.

An important feature of pension is the tax exemptions as you receive the payments on your retirement under Section 80C (PPF, EPF, NPS, etc).

As far as maturity is concerned, you generally have two options.

  1. You can receive monthly payments which give a regular source of retirement income.
  2. You can choose to get your pension as a lump-sum amount. This way you can get the entire amount at once and use it as you like.

At the time of your retirement, you receive payouts regularly or in a lump sum, depending on the scheme that you opt for. The amount you receive depends on several factors like your age, salary and the duration of your employment.

What is an Annuity?

It is similar to an insurance scheme. You make a deal for a stipulated amount of money and pay the money at one shot or through deposits regularly. Your money is invested in mutual funds, stocks or bonds. The specifics like the amount you receive, maturity, etc. are set by you. When the time comes, if you retire or not, you start to receive your payments from the annuity.

A big advantage of annuities is that if you use your income-after-taxes to fund the annuity, then your pay-outs are totally tax-free. Suppose you exhaust your pension completely, you can open an annuity that lasts till your death.

Conclusion

On the whole, a pension needs very little planning on your part because it is likely to make most of the payouts as the law protects pension payments. Whereas with an annuity you receive a fixed stream of payments by buying it with some or all of your pension ‘pot’.

When it comes to deciding which of the two is ideal for you, it is best to look at your lifestyle, planned retirement corpus, spending capacity, etc. It will help you understand which one is more beneficial for your retirement as per your requirement and circumstances.