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Subscribers will now get four opportunities to change asset allocation in a year, know everything – News

NPS Investment Change: The Pension Fund Regulatory and Development Authority (PFRDA) is taking several steps to make the National Pension Scheme (NPS) more profitable for investors. Several changes are being made to the NPS, including increasing the equity allocation limit, giving subscribers more choice of fund managers and giving more opportunities in the year of asset allocation.

PFRDA manages assets of around Rs 7.3 lakh crore. NPS Subscribers can invest their funds in three asset classes – Equity, Government Securities and Corporate Bonds. At present, subscribers can change their fund allocation twice a year. But now it has been decided to amend it to allow the subscribers to change their asset allocation 4 times in a year.

Know what will be the benefit of change

According to reports, NPS subscribers will benefit immensely by getting more opportunities for change in asset allocation in the year. NPS offers market linked returns. With more opportunities to modify the asset allocation, subscribers will be able to take maximum advantage of market movements. They will be able to make their investment decision according to the market movements. The special thing is that only those subscribers who choose the option of Active Choice Asset Allocation will be allowed to change four times.

According to PFRDA chairman Supritam Banerjee, NPS members have been demanding for a long time that they should get more opportunities to change the asset allocation in a year. That’s why we are now allowing them to do this 4 times a year. Banerjee said that the subscribers should always remember that this product has been made keeping in mind the long term. Therefore, it should always be used judiciously.

This move will increase the number of fund managers

Till now the subscriber has to choose any one fund manager out of 7 fund managers for investment. NPS has now given in-principle approval to Axis, Max Life and Tata to also act as NPS fund managers. The services of these three fund managers will also be available to the subscribers as soon as they get the business certificate. Also, till now all the asset classes were managed by the same fund manager. Now this will also be changed and non-government subscribers will be able to appoint different fund managers for each asset class.

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