NPS Investors Can Now Choose Multiple Fund Managers To Maximise Returns

NPS news: The Pension Fund Regulatory and Development Authority (PFRDA) has issued new guidelines allowing National Pension System (NPS) subscribers to select up to three fund managers for various asset classes. This change, detailed in a circular dated November 22, 2023, marks a departure from the previous policy where a single pension fund manager was responsible for all asset classes, Economic Times reported.

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Subscribers can now choose separate fund managers for equity, government bonds, corporate bonds, and alternate asset classes, enhancing the ability to tailor investments according to performance in each category, the report said.

This facility is available to subscribers who have opted for the ‘Active’ choice in asset allocation, as opposed to the ‘Auto’ mode where asset distribution is based on the investor’s age. The new option is open to existing subscribers under the NPS All Citizen Model (Tier-I), NPS corporate model (Tier-I), and Tier-II accounts. However, government employees with only a Tier-I NPS account are not eligible, although they can utilize this feature if they have a Tier-II account.

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New NPS subscribers will gain access to this multiple fund manager option three months post-registration. The PFRDA‘s initiative aims to provide NPS subscribers with a broader range of investment choices and is applicable to all asset classes except the alternate asset class (Scheme A).

Currently, there are ten pension fund managers available for selection, including:

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  1. SBI Pension Fund Pvt. Ltd.
  2. LIC Pension Fund Pvt. Ltd.
  3. UTI Retirement Solutions Ltd.
  4. HDFC Pension Management Co. Ltd.
  5. ICICI Prudential Pension Fund Management Co. Ltd.
  6. Kotak Mahindra Pension Fund Pvt. Ltd.
  7. Aditya Birla Sunlife Pension Management Ltd
  8. Tata Pension Management Ltd.
  9. Max Life Pension Fund Management Ltd.
  10. Axis Pension Fund Management Ltd.

This move by the PFRDA is intended to offer NPS subscribers enhanced flexibility and control over their pension investments.

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