Try GOLD - Free
Park surplus funds in NPS Tier 2 for higher returns
Financial Express Hyderabad
|October 27, 2025
FLEXIBILITY IN ASSET ALLOCATION HELPS BUILD A PORTFOLIO BASED ON RISKAPPETITE
INDIVIDUALS LOOKING FOR higher returns than fixed deposits can park money in National Pension System (NPS) Tier 2 account as it is linked to market instruments.
Unlike Tier 1,ithas no lock-in period, which makes it a flexible option for shortand medium-term needs.
The NPS Tier 2 account is a voluntary savings account under NPS, where one can invest and withdraw anytime without restrictions. One needs tohaveaTier 1 account to have aTier 2 account.
Over a three-year period, the equity returns of 10 pension funds in NPS Tier 2 range between 14.6% to 18%, For government securities the returns are 6.2% to 6.6%.And forcorporate debt, between 8.3% to 8.8%, higher than SBI's fixed deposit rate of 6.45% for two to less than three-year tenures.
This story is from the October 27, 2025 edition of Financial Express Hyderabad.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Financial Express Hyderabad
Financial Express Hyderabad
Vi arm VITIL raises ₹3,300 cr
DEBT-RIDDEN VODAFONE Idea on Thursday said its subsidiary VITIL has completed a ₹3,300-crore fundraise by way of issuing non convertible debentures.
1 min
December 19, 2025
Financial Express Hyderabad
'We are scaling up expansion at Flipkart Minutes'
Flipkart Minutes, the quick commerce arm of Flipkart, plans to add around 500 new dark stores in the next three months.
2 mins
December 19, 2025
Financial Express Hyderabad
Outward FDI contracts in Nov
OUTWARD FOREIGN DIRECT investment by Indian companies contracted 31% on-year to $2 billion in November this year as compared with $2.9 billion in the same month last year, an RBI data show.
1 min
December 19, 2025
Financial Express Hyderabad
ECB holds policy rates steady, turns positive on economy
Policymakers agreed there was no set date for any move. It was a unanimous view. With the degree of uncertainty we are facing, we simply cannot offer forward guidance
1 min
December 19, 2025
Financial Express Hyderabad
‘Consumer durables, education & travel lift credit card spending'
SALILA PANDE, MD AND CEO, SBI CARD
3 mins
December 19, 2025
Financial Express Hyderabad
Securities market Bill in LS
UNDERTHE BILL, the strength of the Sebi board will increase from nine to 15 members. The Code also provides a framework for inter-regulatory coordina- tion, including for the listing of non-traditional securities, and introduces regulatory sand- boxes to facilitate innovation in financial products, contracts and services. In addition, Sebi will be mandated to follow a transparent and consultative process while issuing subordi- nate legislation, conduct peri- odic reviews of regulations, and carry out regulatory impact assessments.
2 mins
December 19, 2025
Financial Express Hyderabad
Mohun Bagan suspended, fined over $100Kby AFC
MOHUN BAGAN SUPER
1 mins
December 19, 2025
Financial Express Hyderabad
More pressure likely for GIC Re
THE REDUCTION IN capital requirements for foreign reinsurance branches (FRBs) under the latest Insurance Amendment Bill is expected to attract more overseas players into the ₹98,000-crore domestic reinsurance market.
1 mins
December 19, 2025
Financial Express Hyderabad
‘Bike taxis have huge headroom to grow’
Uber India's two-wheeler business is now its fastest-growing segment.
1 min
December 19, 2025
Financial Express Hyderabad
IndiGo to face CCI probe over flight cancellations
THE COMPETITION COMMISSION of India (CCI) on Thursday said it has decided to begin an inquiry into IndiGo after receiving a complaint related to the recent flight disruptions.
1 min
December 19, 2025
Listen
Translate
Change font size