New Delhi. If you invest in the government’s National Pension System, then there is great news for you. Now NPS subscribers will be able to change their investment pattern four times in a year. Supratim Bandyopadhyay, chairman of pension fund regulator PFRDA, said on Tuesday that soon subscribers of the new pension scheme will be allowed to change the investment pattern four times in a financial year.
For now these rules are
At present, NPS subscribers are allowed to change the investment pattern only twice in a financial year. There was a long-standing demand to increase this limit. Bandyopadhyay said in a webinar organized by industry body ASSOCHAM on NPS, at present, shareholders can change investment options only twice in a year. Soon, we’re going to increase it to four. We have received several requests to increase it to four.
He said that PFRDA would also like to caution that NPS is a long-term investment (product) for creating a pension corpus and should not be treated as a mutual fund scheme.
Can make changes like this
Investors can divide the money invested in NPS for investment in government securities, debt options, short term debt funds and equities. However, government employees cannot invest much in equity while private sector employees are allowed to invest 75 per cent in equity. With this change, investors will get the freedom to choose different investment options from time to time, so that they can get better returns.
Know what is this government scheme
National Pension System i.e. National Pension System is a pension scheme of the Government of India. NPS is a type of pension cum investment scheme that guarantees market based returns. NPS is tax exempted at all three levels – E-E-E i.e. Contribution-Investment-Return and Withdrawal. Talking about returns, NPC has given more than 12 per cent returns during the last 12 years.
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