The Fantastic program in the budget for children!

Union Finance minister Nirmala Sitharaman has announced an important initiative to ensure the future security of children in the entire Union Budget for the financial year 2024-25. That means NPS under the National Pension Scheme (NPS) which is the main investment scheme of common people. The central government has introduced a scheme called Vatsalya.
The new program is designed to help parents who want to ensure that their children are financially independent in the future. In this scheme, parents can continue to pay until the children reach 18 years of age. The amount paid during this period is saved like a normal NPS scheme.
After the children reach 18 years of age, the entire amount in the Vatsalya account is transferred to the NPS account. Also, after the children reach 18 years of age, there is a facility to switch the scheme to other schemes other than NPS. This is seen as an attempt to promote long-term financial security schemes of the government.
There are two types of accounts in the National Pension Scheme. One is an unlinked scheme and the other is a linked scheme. In the second type of scheme, the money invested in the NPS account is invested in stocks and debentures.
The profitability of the National Pension Scheme varies depending on the performance of the stock market. Thus, the amount available at the time of retirement is not pre-determined. Thus, an average return of 9-12 percent on the amount invested in the NPS scheme is available. Similarly, the NBS Vatsalya Scheme amount will also be invested in the stock market. Hence, sukanya is said to be more profitable than the Samriti scheme.
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S Venkateshwari

24/07/2024 08:01 PM