The New Pension System (NPS) will now be more attractive than before. We are saying this because pension fund regulator PFRDA is preparing to launch a new scheme – New Balanced Life Cycle Fund. This will help the shareholder to build a substantial fund till retirement. Under this proposed scheme of PFRDA, more investment amount can be allocated in equity funds for a longer period. Under this scheme, there will be a gradual reduction in equity investment once the shareholder turns 45, whereas currently this reduction starts from 35 years.
What did the regulator say
Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty said – We will bring a new balanced life cycle fund in the second quarter (July-September) to allocate investment in equity share funds for a longer period. He said in a program related to Atal Pension Yojana that under this new scheme of NPS for non-government employees, there will be a gradual reduction in equity investment from the age of 45, whereas currently this reduction starts from the age of 35. She goes.
If this happens, people opting for NPS will be able to invest more amount in equity funds for a long time. This will increase the pension fund in the long term while maintaining a balance between risk and return.
three lc funds now
There are currently three ‘Life Cycle’ (LC) funds. These are known as LC 75, LC 50 and LC 25. These ‘life cycle’ funds provide customers with an investment option. Under this, investors choose to allocate the amount to be invested in equities and bonds.
Demand for Atal Pension
Referring to Atal Pension Yojana (APY), Deepak Mohanty said that in the last financial year 2023-24, 1.22 lakh new shareholders joined APY. This is the highest number so far in a single financial year since the scheme was launched. Of these, 52 percent are women.
He said that 1.3 crore shareholders are expected to join this scheme in the current financial year. Mohanty said that by June 2024, the total number of shareholders joining APY is expected to cross 6.62 crore.
Registration in NPS
Whereas the registration under NPS (Non-Government) stood at 9.7 lakh in 2023-24 and it is expected to reach 11 lakh in the current financial year. Mohanty said that if the market functions normally, the total fund including Atal Pension Yojana is expected to increase to Rs 15 lakh crore in 2024-25 from Rs 12.4 lakh crore at the end of financial year 2023-24.
