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Becomes first app-based platform to offer NPS in India
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ETMONEY adds most number of new investors in NPS daily, within 3 weeks of the launch
India’s largest personal finance app, ETMONEY, has pioneered yet another industry innovation, now becoming the first fin-tech app to incorporate the world’s lowest-cost investment and retirement savings product – India’s National Pension Scheme (NPS) to its roster. Within 3 weeks of the launch, the app has already become the country’s largest source of daily new subscribers in the NPS scheme.
The new NPS introduction by the app follows close on the heels of ETMONEY becoming India’s first free App-only platform for Zero Commission Direct Mutual Funds. The launch has been timely since most of India’s earning individuals are looking to buy Tax-saving Products to cut down their tax outgo.
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The principal benefit of NPS investments is its low management fees of just 0.01% annually (i.e. an annual charge of ₹1 for every ₹10,000 managed). Including back-office operations fees included, the overall cost of investing in NPS just works out to be 0.02% of the investment value. This makes NPS, the world’s lowest-cost investment product for long-term retirement savings. The low cost has proven to translate into higher returns than traditional long term savings products.
ETMONEY has further simplified NPS investments by facilitating one-tap payments and instant investments, generating the Permanent Retirement Account Number in real-time, which otherwise, takes weeks. With the deadline for submitting tax proofs not very far, this seamless process of investment on ETMONEY has made the product so accessible for the first time.
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Santosh Navlani, COO – ETMONEY said, “India has one of the youngest working populations in the world. In a decade or two from now, we will possibly have a rising number of retirees from Private Sector Companies. Unfortunately, NPS has not seen wider adoption due to a lack of distributor interest. The low cost, which is what works for NPS has stopped the distributors from taking it to young savers as commissions are equally lower. With ETMONEY’s digital-only approach to financial services, we are leveraging our low-cost technology & still make it economically viable for us to take this product to retail investors at scale. So far less than 10 lakh citizens have invested in NPS since inception. We aim to add another 10 lakh NPS investors in the next 2-3 years & help Indians retire rich.”
With a reach of over 75 lakh Indians who have downloaded the ETMONEY App, the company has already become the largest contributor to new NPS accounts on a daily basis for the last couple of weeks.
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