NPS: Pension fund regulator PFRDA is preparing to introduce ‘New Balanced Life Cycle Fund’ to make the New Pension System (NPS) attractive among the youth. This will help the subscriber to build a good fund till retirement
NPS: Pension fund regulator PFRDA is preparing to introduce ‘New Balanced Life Cycle Fund’ to make the New Pension System (NPS) attractive among the youth. This will help the shareholder to create a good fund till retirement.
These will be the new rules
Under this proposed scheme of PFRDA, more investment money will be allocated in equity fund for a long time. Under this scheme, equity investment will gradually decrease when the shareholder turns 45 years old, whereas currently this reduction starts from 35 years. In this way, the shareholders joining NPS will get the facility to allocate more investment amount in equity fund till the age of 45 years. This will help them to create a good fund till retirement.
New Balanced Life Cycle Fund will come in July-September quarter
Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty said here on Friday that he will bring ‘New Balanced Life Cycle Fund’ in the second quarter (July-September) to allocate investment in equity share fund for a longer period. This will enable more allocation in equity fund for a longer period.
These will be the rules
He said in a program related to Atal Pension Yojana that under this new scheme of NPS, equity investment will gradually decrease from the age of 45 years, whereas currently this reduction starts from 35 years. If this happens, people opting for NPS will be able to invest more amount in equity fund for a long time. This will increase the pension fund in the long run while there will be a balance between risk and return.
So many people joined Atal Pension
Referring to the Atal Pension Scheme (APY), Mohanty said that in the last financial year 2023-24, 1.22 lakh new subscribers joined APY. This is the highest number ever in any financial year since the scheme was launched. He said that 1.3 crore subscribers are expected to join this scheme in the current financial year. According to PFRDA, the total number of subscribers joining APY is expected to cross 6.62 crore by June 2024.
