National Pension Scheme Latest Update: Those who are the subscribers of the National Pension Scheme (NPS), here comes a piece of good news for you. As per the latest updates, the Pension Fund Regulatory and Development Authority (PFRDA) said it is soon going to allow the investors to change their investment pattern up to four times in a financial year.
Giving details, PFRDA Chairman Supratim Bandyopadhyay in a statement said that the subscribers have been demanding an increase in investment leeway. He added that till now, subscribers can change the investment pattern twice in a financial year under the NPS scheme.
“Now, in a very short period of time, we are going to increase it to four times because there are requests that you allow more number of times (to change the investment pattern),” he was quoted as saying by a news portal.
Subscribers of NPS to get more investment leeway@DFS_India @fpjindia #PFRDA #NPS #Investment pic.twitter.com/FFLcqx5enX
— PFRDA (@PFRDAOfficial) January 17, 2022
Notably, the PFRDA allows the subscribers to allocate their NPS investments in a fixed ratio between investment opportunities such as government securities, debt instruments, short-term and long-term debts, and equities, among others.
However, there are terms and conditions to the allocation in their investment, depending on the type of subscribers. The employees working with central or state governments cannot allocate more funds to equities, whereas the employees working in private firms are allowed to invest up to 75% of their NPS investments in equities.
Moreover, the investors can change their investment ratios accordingly. As per the updates from the PFRDA chairman, the NPS is a long-term investment product that can be used to build a pension corpus.
