Good News for NPS subscribers: After the new rules, the equity share of pension funds will increase and the subscribers will get higher return on investment.
Good News for NPS subscribers: If you invest in NPS for your retirement fund and pension, then there is good news for you. Because now people will get more return on investment. PFRDA, the body regulating the National Pension System, is coming up with new guidelines related to equity investment. After the new investment guidelines, pension fund managers will be able to invest in IPO, FPO and offer for sale of companies. Apart from this, the scope of investment of pension funds will also increase. Now fund managers will be able to invest in companies of BSE 200, NSE 200. After the new rules, the equity share of pension funds will increase and the subscribers will get higher return on investment.
Equity guidelines have been prepared
According to Supratim Bandyopadhyay, chairman of the regulator PFRDA, the equity guidelines for fund managers have been prepared and now the scope of equity investment will increase and pension funds will be able to invest in companies of BSE 200, NSE 200 and pension funds in the coming big IPO. investment will take place. PFRDA believes that there is risk in equity investment but there is potential for higher returns so far NPS has given a return of 11% in equity and at present an investment of 1 lakh crore is present in equities through pension funds and after the new rules It will increase.
Foreign investors will be inclined towards pension funds
Through changes in the PFRDA Act, the FDI limit has also been increased from 49% to 74%, after which the existing 7 pension fund managers can sell their stake to foreign partners. There will also be a 74% foreign investment limit for new fund managers coming through on-tap licences. After the increased FDI limit, the interest of foreign investors in pension funds will increase and can see benefits in the long term.
Subscribers of NPS
At present, 4.37 crore subscribers are connected through NPS and a target has been set to add 10 million new subscribers in the current year, in which 10 lakh are connected to normal NPS and 90 lakh are connected to the subscribers. After the change in the KYC rules, now it has become very easy to open an NPS account by having KYC through Aadhaar and NPS account can be opened in few minutes through online medium.
Documents are not required to withdraw money
If you want to withdraw money from your NPS fund during the Corona period, then you do not need any kind of document. You can withdraw 25% of your contribution by self-declaration. According to Supritam Bandyopadhyay, there is no need of time for partial withdrawal, documents related to home, marriage, medical and only through self-declaration, subscribers can withdraw money without any difficulty. Apart from this, the retirement withdrawal limit has been increased from 2 lakhs to 5 lakhs. That is, in case the pension fund amount is less than Rs 5 lakh, the subscribers are allowed to withdraw the entire amount without buying any annuity.
Option to get NAV on the day of investment
In investing in NPS, the customer used to get the NAV recorded in the customer’s account after two days, due to which the investor would suffer in market volatility, but through the D-Remit facility, the option of getting the NAV on the day of investment has been given in which If the contribution is made by 9:30 am, the NAV of that day will be given to the investor. So far, by adding 85 thousand subscribers to the D-Remit facility, 450 crores have been invested.
The maximum share of equity investment has been increased gradually
Supratim Bandyopadhyay believes that after the new bill proposed in the monsoon session of Parliament, the pension funds which are not yet under the Regulatory Authority will come under PFRDA, but whether there should be a regulator for all pension funds or not, only the central government can decide. is. Being an equity investment, NPS investment also carries risk, but keeping in view the better returns, the maximum share of equity investment has been gradually increased. Earlier government employees could invest only a maximum of 15% in equity, but now 50% equity investment is allowed and private sector employees can invest up to 75% in equity.
Individual NPS Agents Approved
To increase the confidence of investors in NPS, RFP for Minimum Return Product has been issued. Talks are on with insurance regulator IRDAI on linking variable annuity with inflation. In order to maximize the reach of NPS, the regulator has recently allowed individual NPS agents and these agents will be on the lines of life insurance and mutual funds. In the coming days, the sale of NPS products can also be approved through life insurance companies.
