Not only mutual funds, NPS will now earn strong! Here are the new rules

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Earning from NPS

Many changes have been made in the National Pension System i.e. NPS by the Pension Fund Regulatory and Development Authority with the introduction of Multiple Scheme Framework (MSF). Like many plans of investment, many levels, the option to release before the scheme and equity investment of up to 100 percent. It will now act like a more or less mutual fund. Let’s understand in detail what are the new NPS systems. And what are the plans for earning in them.

Under the MSF i.e. Multiple Scheme Framework, non-government customers can now choose from the traditional uniform model, from low-, medium-and high risk options. This method defines NPS afresh. The new investment provides customization, round-based allocation and market-linked performance equal to funds.

This has also changed

A significant change has been made in pension funds. Which is making it flexible. Subscribers are no longer obliged to wait till the age of 60 years. They can withdraw after 15 years and combine it with important opportunities like child education, home purchase or early retirement. Cost structure, which is 0.30% of the managed assets (AUM), is slightly higher than before, but is appropriate due to increased flexibility and transparency. MSF has planned to design diversion products for pension funds. Many major managers have introduced new schemes under this structure, which have been created keeping in mind the specific investor profile.

  1. HDFC Pension Fund has introduced three options. An income fund that focuses on moderate growth (50–75% equity), a loan-oriented fund that includes a 100% corporate loan, and an aggressive equity fund that provides 80–100% equity exposure.
  2. Axis Pension Fund’s “Golden Year Growth Fund” adopts long-term equity strategy with investment in 65-100% shares, which makes balance in loans with limited risk.
  3. ICICI Prudential Pension Fund has launched a hybrid scheme with a 50-80% equity and less than 50% loan mix, designed for balance between growth and income.
  4. Kotak Mahindra Pension Fund has introduced its “Kubera Equity Fund” as a long-term, high-scale scheme with 80–100% equity and minimum loan.

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