NPS Subscribers: Supratim Bandyopadhyay said that NPS subscribers will get the flexibility to change the investment pattern 4 times in a year. Those who have a good understanding of the market will be able to change these patterns in the ups and downs of the market. They can decide a better strategy of returns.
Now you will be able to change the pattern of investment in the National Pension System (NPS) 4 times in a year. In the next few days, these options will be available for the subscribers. There will be investment options in view of the market volatility. The special thing is that no charges will be taken for changing the investment pattern. PFRDA Chairman Supratim Bandyopadhyay gave this information.
Supratim Bandyopadhyay said that, NPS subscribers will get the freedom to change the investment pattern 4 times in a year. Those who have a good understanding of the market will be able to change these patterns in the ups and downs of the market. They can decide on a better strategy of returns and there will be no need to pay any kind of charges.
Was announced in the budget
In the budget, Finance Minister Nirmala Sitharaman had announced to increase the scope of the National Pension System. Deduction on investment made in NPS for state government employees was announced to increase from 10% to 14%. State government employees will get tax benefits. After which the demand for deduction up to 14% has started for private sector employees as well.
Demand for 14% discount for private sector also
According to Supratim Bandyopadhyay, till now the state government employees were not getting tax benefits. But these employees will benefit from the announcement related to NPS in the budget. He said that there should be 14% exemption for all private and public sector enterprises. At the same time, we will demand from the government for this. He said that the government will not suffer much due to increase in exemption.
Pension funds decide their own investment strategy
The chairman of the Pension Fund Regulatory and Development Authority believes that pension funds decide their own investment strategy. The regulator had approved with conditions for investment in IPO, but pension funds have not invested in new age company Zomato, Paytm. Pension funds may not have invested in a new age company considering the risk.
Equity gives better returns in long term
Supratim Bandyopadhyay said that the money coming in pension will support the capital market for the long term. The equity investment limit for central government employees is proposed to be up to 75%. There is an exemption for private sector employees to invest 75%. Equity gives the best returns in the long run. NPS has a CAGR return of 13.5% in Equity and 9.7% in Corporate Bonds.
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