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  Choosing the appropriate equity stocks in publicly traded firms might be crucial to accumulating wealth in this competitive world of financial investing. It does not, however, offer a quick way to become wealthy; instead, it calls for patience, risk tolerance, and education. The opportunity for profit is real, but so is the risk of losing your actual money in equity markets, which are impacted by anything from world events to technological advancements. Millions are captivated by the promise of equity market rewards, but only disciplined investors regularly generate real money. Choosing the appropriate stocks in 2026 involves more than just luck—a methodical methodology is needed as global equity markets navigate post-pandemic recalibration, AI-driven volatility, and changing interest rate policies. This manual breaks through the clutter by offering practical tactics based on ageless ideas and current market conditions. Recall that only well-informed choices exist; there are no f...
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What is this NPS Tier 2 Account; know why you should open this account

What is this NPS Tier 2 Account; know why you should open this account

 


The National Pension System (NPS) offers two types of accounts. NPS Tier 1 and NPS Tier 2. NPS Tier 1 is a compulsory pension account, while NPS Tier 2 account is an optional facility for NPS Tier 1 account holders, which can be opened at the decision of the subscriber. Let us talk about the benefits of this NPS Tier 2 account of the National Pension System.

 

1. Ease of opening an account

 

Pension subscribers can activate their NPS Tier 2 account offline or online through the nodal office or NPS mobile app. For this, all you need is an active and operational NPS Tier 1 account. The NPS Tier 2 account can be opened with an initial contribution of just Rs 1,000 and the minimum subsequent contribution for this account is just Rs 250. With the activation of an NPS Tier 2 account, the NPS account holder becomes free to invest or withdraw at any time without any limitation.

 

2. High Return

 

The NPS product is a market-linked product and depends on the risk appetite of the NPS account holder. The NPS account holder can decide an appropriate asset allocation pattern from among equities, corporate bonds and government securities within the prescribed limit to get optimum returns.

 

3. Low Price

 

NPS product offers the lowest cost pension product in the world. The overall cost in NPS product is the lowest due to economies of scale in operating system architecture. In addition, the accumulation of retirement funds over a period is accelerated due to nominal fees and compound effects incurred by the customer.

 

4. Flexibility to invest

 

An NPS Tier 2 account holder is free to choose any registered pension fund (PF) and a company offering investment options.

 

5. Tax Benefits

 

Special tax benefits on contributions made in NPS Tier 2 are available to Central Government customers. These are for a lock-in period of 3 years. These tax benefits are up to Rs 1.5 lakh under section 80C of the Indian Income Tax Act 1961. At the same time, capital gains from investing in NPS Tier 2 investment account are taxable at the marginal rate.

 

6. Easy access and easy transfer

 

NPS Tier 2 account can be operated through an online mobile app. This includes withdrawal. NPS account holders are also able to transfer funds from their NPS Tier 2 account to NPS Tier 1 NPS account.


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