Get an application form from a Point of Presence Service Provider (POP-SP) or download it from the NSDL website (npscra.nsdl.co.in). Fill up the form and submit it at a nodal office of an POP-SP .

DOCUMENTS NEEDED

You need to submit copies of proof of identity and residence (passport, Aadhar card, ration card, voter ID, driving licence, utility bills, etc) along with the application form. Carry original documents for verification by the POP-SP.

APPLY ONLINE

The process is very easy if your mobile number is linked to your Aadhar card.Just log on to the NSDL website (enps.nsdl.com), key in your Aadhar number and you will receive a one-time password (OTP) on your registered mobile number.

The OTP is for authentication. If validated, the investor's details and photo are automatically filled up in the online form. He must also upload a scanned signature and a photograph if he doesn't want the Aadhar picture.

Initial contribution:

After you upload the form, you will be routed to a payment gateway for the initial contribution to your NPS account. The minimum amount is `500. You can pay by debit or credit card or Internet banking.

PRAN card:

After you make the payment, a Permanent Retirement Account Number (PRAN) will be allotted to you. In a few days, you will receive a welcome kit from the PFRDA containing a PRAN card, IPIN, TPIN and scheme details.

Submitting form offline:

Take a print of the form you have filled online, paste your photograph on it and sign in the space for the signature.This form should then be sent to the Central Recordkeeping Agency at: Central Recordkeeping Agency (eNPS) NSDL e-Governance Infrastructure Limited, 1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013

LINK MOBILE TO AADHAR

If your mobile number is not linked to your Aadhar, send a request to the UIDAI to update your mobile details. The form can be downloaded at uidai.gov.inimages application_form_11102012.pdf

CHOOSING A PENSION FUND

In the form, you will have to mention the pension fund you want to invest in.There are seven pension funds available to investors in the general category.An investor can switch to another pension fund only once in a year so choose carefully . Go for a fund house that has consistently done well in the asset class you want to invest in.

ASSET MIX

You will also have to mention the asset mix for your investments. There are three classes of funds.

E class:

These are equity funds that invest in stocks. Till now, pension fund managers could invest only in Nifty shares in the same proportion as their weightage in the index. But now the PFRDA has allowed fund managers to invest in a broader universe of shares that are in the F&O segment. They are also allowed to invest actively and not stick to the index. You can't put more than 50% in these funds.

C class:

These are corporate debt funds that invest in bonds issued by companies. Though PFRDA keeps a strict watch on quality of the holdings, some fund managers have in the past invested in low-rated bonds to earn higher returns. This can be risky and PFRDA has penalized funds that have followed such practices.

G class:

These funds invest in government securities. Though there is no default risk, these funds typically invest in long-term bonds that are very sensitive to interest rate movements.They have done very well in the past one year because rates are coming down. But in a rising rate scenario, they could even churn out losses.

AUTO CHOICE

This option suits investors who are unsure about the asset mix. The asset allocation here depends on the age of the investor. Till the age of 35 years, 50% of his corpus will be in the equity funds and the rest in corporate debt and gilts. Every year, 2% of the assets in the equity fund and 1% of the assets in corporate bonds will be shifted to the gilt fund. In five years, by the time he is 40, the equity exposure of his NPS corpus would be down to 40%. By the time he is 55, he would have only 10% in equities, 10% in bonds and 80% in gilts.