Help Needed to Understand e-NPS Contribution Charges

[Maitri_Maniya]

I'm planning to invest in the National Pension System (NPS) and need some help understanding the contribution charges via e-NPS. If I invest ₹500 daily, what charges will be applicable?

I checked my transactions from last year and couldn't understand the "Withdrawal/deduction in units towards intermediary charges (₹)" and I'm unable to find where to see extra charges applied after every investment made.

Will I be charged more if I invest ₹500 daily compared to making a lump sum investment of ₹10,000 or ₹50,000? Or are there no charges applied in e-NPS?

 

[helloworld]

Thread 'Best card for NPS Contribution'

Sep 19, 2022

Last update: 11-01-2025

• HDFC : Milestone benefits only ✅
• HSBC Cashback: 0% ✅
• AMEX Gold Charge: 1 MR/50 + Milestone benefits ✅
• AMEX SmartEarn/ MRCC/Platinum Travel: Milestone benefits only ✅
• AU Zenith: Milestone benefits only ✅
• AU Zenith+: 1% + Milestone benefits ✅
• SC Smart: 2% ✅
• SC Ultimate: 2% (Govt. transaction) ✅
• ICICI AmazonPay: 1%
• Yes Marquee: 1.25% (Special MCC) ✅

Note: Mostly other cards from same bank works with varied reward rate and similar rule of exclusion.

For NPS payments MCC: 9399 (Govt. Services)

Do check both payment...

• Waynoway
• Replies: 651
• Forum: Credit Card - General

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: )

 

[real_name_hidden]

Withdrawal/deduction in units towards intermediary charges is like expense ratio in mutual fund.

Refer this

Charges under NPS | NATIONAL PENSION SYSTEM TRUST

Find out how much you will need to pay in National Pension System (NPS) charges

npstrust.org.in

 

[am11]

I'm planning to invest in the National Pension System (NPS) and need some help understanding the contribution charges via e-NPS. If I invest ₹500 daily, what charges will be applicable?

I checked my transactions from last year and couldn't understand the "Withdrawal/deduction in units towards intermediary charges (₹)" and I'm unable to find where to see extra charges applied after every investment made.

Will I be charged more if I invest ₹500 daily compared to making a lump sum investment of ₹10,000 or ₹50,000? Or are there no charges applied in e-NPS?

The more frequently you pay, the more number of times you have to pay the commission and service charges.
So paying 500 daily is not a good option.

Now coming to the scenarios:
1. If you have cards like Amex Gold or Amex MRCC, payments in multiples of 1000*6 (for Gold) or 1500*4 (for MRCC) can be beneficial rather than a single payment.
2. If you don't have the Amex cards, it would be better to invest on a monthly basis (rather than lumpsum investment). Because NPS investments are similar to mutual funds. The investments would average out if paid similar to a monthly SIP. If you pay a lumpsum amount and the markets fall after that, then you will lose out on buying more units during the downfall (Example: If someone invested 50K in March end just before FY closing, they will be crying today. Just google "Sensex" and you would know).
3. Another option, and suitable for experienced investors is buying the dip. When the markets fall, then you buy. But not recommended for all as you cannot predict what would happen next.

So chose your option wisely.