A balanced life-cycle fund is in offing for NPS subscribers: PFRDA chief Deepak Mohanty

“The money volition beryllium an further enactment successful the car prime wherever equity allocation tin beryllium maximum up to 50%, but the tapering would commencement lone aft 45 years of age. This volition assistance subscribers accumulate much corpus successful their idiosyncratic status fund," Mohanty said connected the sidelines of the PFRDA's Annual Felicitation Program for Atal Pension Yojana (APY) successful New Delhi.

Life-cycle funds are asset-allocation funds successful which the stock of each plus people is automatically adjusted to little hazard arsenic the desired status day approaches.

Also Read: Unlocking status prosperity: How NPS remains cutting-edge

NPS choices

Currently, the National Pension System (NPS) offers 2 choices—active and auto—to subscribers for creating the pension portfolio. In the progressive choice, subscribers tin determine the allocation crossed equity, firm bonds and authorities securities connected their own. The car choice, however, comes with 3 options: Aggressive money (75% equity allocation), mean money (50% equity allocation) and blimpish money (25% equity allocation). The equity allocation starts tapering disconnected successful each options aft a subscriber turns 35. That said, car prime fundamentally allows a maximum of 20% successful the equity money astatine 50 years of age, which further tapers down to 15% by the property of 55 years.

Mohanty said the PFRDA added 947,000 caller subscribers from the non-government sectors to the NPS successful 2023-24. That boosted the NPS' assets nether absorption (AUM) by 30.5% year-on-year to ₹11.73 trillion. The full NPS subscriber basal stands astatine 180 cardinal arsenic of 31 May 2024.

Also Read: NPS is an charismatic merchandise due to the fact that of its debased cost: PFRDA chairman

The regulator aims to adhd 1.1 cardinal non-government subscribers successful 2024-25.

The full gross enrolments nether the Atal Pension Yojana (APY) crossed 66.2 cardinal arsenic of 20 June 2024, of which much than 12.2 cardinal were added successful 2023-24. “It is the highest ever successful a fiscal twelvemonth since the scheme's inception," Mohanty said.

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Published: 21 Jun 2024, 06:00 PM IST