At a recent board meeting, the Pension Fund Regulatory and Development Authority (PFRDA) approved increasing equity allocation from 50% to 75% for private sector NPS. The regulator has also expanded the universe of corporate bonds for NPS investment. For instance, a 45-year-old who opts for aggressive investment strategy starts with an equity allocation of just 35%. Under the NPS, the equity fund is actively managed and you can choose from eight fund managers to manage your money currently. “Nearly 40% of NPS money is parked in corporate bonds, so if we restrict ourselves to ‘AA’ bonds, availability becomes a problem.

Source: Mint May 09, 2018 03:56 UTC