Stories
Make Your Child a Millionaire with ₹250: 4 Lakh Families Trust NPS Vatsalya Scheme
- •The central government's 'NPS Vatsalya' scheme is gaining popularity for securing children's future.
- •Accounts under the scheme have surpassed 4 lakh by August 2026, up from 1.07 lakh in March 2025.
- •The scheme allows opening an account for a minor with a minimum of ₹250 per month, with no upper investment limit.
- •Funds are invested in the stock market, corporate debt, and government securities by professional managers.
- •With a 12% return, a monthly investment of ₹250 can accumulate over ₹2.89 crore by the child's age of 60.
Key Questions Answered
The central government's NPS Vatsalya scheme allows parents to open a pension-cum-investment account for minor children (0 to 18 years) with a minimum deposit of ₹250 per month, with no upper limit for investment. By August 2026, accounts linked to this scheme crossed the 4 lakh mark, growing significantly from 1.07 lakh in March 2025 and 2.15 lakh in March 2026.
NPS Vatsalya offers three distinct investment options managed by professional pension fund managers in the stock market, corporate debt, and government securities. Under the Aggressive option, 75% of funds are invested in equity for higher risk and return; the Moderate option allocates 50% to equity; and the Conservative option invests 25% in equity for lower risk and return.
Yes, flexibility is built into the scheme to handle emergencies, allowing a maximum of up to 25% of the deposited principal to be withdrawn after 3 years of opening the account. This withdrawn amount can be utilized specifically for the child's higher education, treatment of serious illnesses, or other designated special circumstances.
