Make your child a crorepati with just ₹250; 4 lakh families have placed their trust in this government scheme..

The Central Government’s ‘NPS Vatsalya’ scheme is rapidly becoming the top choice for parents seeking a secure and prosperous future for their children. Starting with a minimum contribution of just ₹250, the number of accounts under this pension-cum-investment scheme crossed the 4-lakh mark by August 2026. While 1.07 lakh NPS Vatsalya accounts were opened by March 2025, the figure rose to 2.15 lakh by March 2026 and surpassed 4 lakh in August 2026.

The primary reason for this massive surge is the ability to open an account with a very small investment. An NPS Vatsalya account can be opened in the name of a minor (aged 0 to 18 years) with a monthly contribution of just ₹250. Notably, there is no upper limit on the investment amount for this account. Apart from parents, relatives and family friends can also open an NPS Vatsalya account for the child.

**Highest Number of Accounts Among School-Going Children**

An age-wise analysis of NPS Vatsalya account holders presents an interesting picture. Children aged 10 to 14 years hold the largest share (36.9%) of total accounts. Children aged 5 to 9 years account for 31.6%, while those aged 15 to 19 years make up 21.1%. Children aged 0 to 4 years represent 10.4% of the total. This means that children under the age of 15 account for approximately 68.5% of all accounts. This clearly indicates that parents are planning for their child's future—spanning from primary education to their career and retirement—right from an early stage.

**How ​​Will a Corpus Worth Crores Be Built?**

NPS Vatsalya is a market-linked scheme. The capital deposited in the scheme is invested by professional pension fund managers in the stock market, corporate debt, and government securities. Staying invested in equities for the long term offers the immense benefit of compounding. If a parent starts contributing ₹250 per month to an NPS Vatsalya account when the child is just one year old and continues this investment until the child turns 60, a corpus running into crores can be accumulated.

Assuming a 12% return, a monthly contribution of ₹250 would result in a fund of ₹1,66,980 by the time the child turns 18.

Once the child reaches the age of 18, the account converts into a regular NPS pension account. If the monthly contribution of ₹250 continues thereafter, the accumulated corpus would reach ₹2,89,34,447 by the age of 60. This calculation is based on a 12% return. It is important to note that, as NPS Vatsalya is a market-linked scheme, actual returns may fluctuate.

Three investment options are available:
Aggressive – 75% of the funds are invested in equities; consequently, both risk and potential returns are higher.

Moderate – 50% of the funds are invested in equities; this results in moderate risk and returns.

Conservative – 25% of the funds are invested in equities; this entails lower risk and lower returns.

Provision for withdrawal of up to 25% for higher education and medical emergencies
Although this scheme is designed for the long term, the rules incorporate flexibility to ensure funds are available during emergencies. Up to 25% of the contributed principal amount can be withdrawn three years after the account is opened. These funds can be utilized for the child's higher education, treatment of critical illnesses, or other specified circumstances.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.