We’ve all grown up hearing our parents say, “Money doesn’t grow on trees.” In most cases, it was a reminder that wealth takes time, discipline, and the right system to grow. That’s where NPS comes in. With its latest reforms, NPS has transformed from a basic retirement product into one of the most efficient long-term investing structures today.
NPS now lets you invest through the Multiple Scheme Framework (MSF), introduces a 15-year vesting period for new MSF schemes, and even allows higher equity exposure. The full context is covered in NPS 3.0 reforms. All of this simply means you have far more flexibility in structuring your portfolio, especially if you want a larger share of equity in your retirement plan.
How ₹10,000 a month actually grows inside NPS?
Let’s keep it simple. If you invest ₹10,000 every month from age 25 to 60, that’s 35 years of disciplined investing.
And with the new flexibility in NPS, especially the option to hold more equity, your final corpus mainly depends on your equity exposure and how consistent the markets are.
Here’s how it works in practical scenarios:
1. If you invest conservatively
If you prefer a balanced mix of debt-equity (say 40–50% equity), your returns will reflect that stability. For example,
- If you start with ₹10,000/month
- Invest for 35 years
- Earn ~10% annually
This approach can build your retirement corpus of about ₹3.51 crore. This is similar to what traditional NPS typically delivered before the recent reforms.
2. If you lean moderately toward equity
With the new NPS rules, it’s easier to tilt your portfolio slightly more toward equity.
And with expected ~12% annual returns, the same ₹10,000 a month can grow to about ₹7.1 crore. This is where the compounding really starts to pick up, and your final corpus becomes noticeably larger than a conservative mix.
3. If you stay meaningfully invested in equities
With MSF and expanded equity options, you can hold 75-100% in equities for a longer period to drive long-term growth.
And with expected ~14–15% annual returns, your ₹10,000 a month can turn into ₹14.9 crore. This is the stage where NPS starts functioning like a serious wealth-creation tool.
Can it reach ₹20–36 crore?
It is possible when a couple of factors work together:
1. Increasing your contributions over time
Most people don’t keep investing the same amount for decades. As your income goes up, you can put aside a little more each year. Even a simple annual step-up of 5–10% dramatically accelerates the final corpus by the time you retire.
For example:
- Start with ₹10,000/month
- Increase contributions by 10% every year
- Invest for 35 years
- Earn 12–15% annually
Just this one habit can grow your corpus into the ₹20–36 crore range. This happens because every increase raises the base on which compounding works and with long-term equity exposure, your growth multiplies.
2. Holding higher equity for longer
Earlier, NPS either capped your equity exposure or steadily reduced it with age. That means your money didn’t get enough time in equity to grow properly.
But with MSF and the new allocation rules, you can stay equity-heavy for much longer. And when equity gets more time to grow, your corpus can jump from single-digit crores to double digits.
If you want to see how these returns are taxed, we’ve covered the details in NPS tax benefits.