Pension Fund regulator PFRDA is preparing to introduce ‘New Balanced Life Cycle Fund’ to make the New Pension System (NPS) attractive among the youth. This will help the investor to create a good fund till retirement. Under this proposed scheme of PFRDA, more investment amount can be allocated in equity fund for a long time. Under this scheme, equity investment will gradually decrease when the subscriber turns 45 years old. Whereas currently this reduction starts from 35 years.
A big fund will be ready by retirement
In this way, subscribers joining NPS will be able to allocate more investment amount in equity funds till the age of 45 years. This will help them to create a good fund till retirement. Pension Fund Regulatory and Development Authority Chairman Deepak Mohanty said here on Friday, “We will bring ‘New Balanced Life Cycle Fund’ in the second quarter (July-September) to allocate investment in equity share funds for a longer period. This will enable more allocation in equity funds for a longer period.”
You will be able to invest more in equity for a long time
He said in a program related to Atal Pension Yojana that under this new scheme of NPS, there will be a gradual reduction in equity investment from the age of 45 years, whereas currently this reduction starts from 35 years. If this happens, people opting for NPS will be able to invest more amount in equity funds for a long time. This will increase the pension fund in the long term. While a balance between risk and return will also be established. Referring to the Atal Pension Yojana (APY), Mohanty said that in the last financial year 2023-24, 1.22 lakh new subscribers joined APY. This is the highest number so far in any financial year since the scheme was launched. He said that 1.3 crore subscribers are expected to join this scheme in the current financial year. According to PFRDA, the total number of subscribers joining APY is expected to cross 6.62 crore by June 2024.
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