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HomeBusinessGovernment preparing for major changes on NPS, know the whole thing here

Government preparing for major changes on NPS, know the whole thing here


  • PFRDA in preparation for major changes in NPS scheme
  • Investment pattern may change 4 times in a year
  • At present it is allowed to do this twice in a financial year.
  • Demand to increase the number of changes in investment pattern

New Delhi
There is good news for the investors of National Pension System (NPS). Pension fund manager Pension Fund Regulatory and Development Authority (PFRDA) is preparing for major changes in this scheme. Under this, NPS investors can change their investment pattern 4 times in a financial year. At present it is allowed to do this twice in a financial year. PFRDA Chairman Supratim Bandyopadhyay gave this information on Tuesday.

Bandyopadhyay said in a webinar organized by industry body Assocham on the NPS scheme that the investment choice can be changed twice a year. There are plans to increase this number to 4 soon. We have received several requests to increase the number of changes in the investment pattern. However, he said that the purpose of this scheme is to create a pension fund and it should not be seen as a mutual fund scheme.

In the new year, many IPOs including LIC will dominate, keep money ready if you want to earn!

Mutual fund is not NPS
He said that many times people see it in association with mutual funds, which can give good returns. You have to give some time for this and then after that only you can use it (change in investment pattern). Use it appropriately. We’re going to increase that number to 4.

In this, subscribers can put their investments in a variety of instruments. These include government securities, debt instruments, short term debt investments and equities. But there are different rules for different types of subscribers. For example, government employees cannot invest much in equities while employees in the corporate sector can invest up to 75 per cent of their assets in equities.

Even before the new year, the employees-pensioners of this state got a big gift, dearness allowance increased by 14 percent

Permission to change fund manager
Also, the subscribers are allowed to change the fund manager once in a year. Fund managers invest the pension assets of the subscribers in investment schemes as per their choice. Currently, ICICI Prudential Pension Funds Management Company, LIC Pension Fund, Kotak Mahindra Pension Fund, SBI Pension Fund, UTI Retirement Solutions, HDFC Pension Management Co and Birla Sun Life Pension Management have got the fund manager’s permission under NPS.

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