If you invest in NPS for your retirement fund and pension, then there is good news for you. Now people will get more return on investments. PFRDA, the regulating body of the National Pension System (NPS), is coming up with new guidelines related to equity investment.
After the new investment guidelines, pension fund managers will be able to invest in IPOs, FPOs, and offers for the sale of companies. Apart from, the scope for investing in pension funds will also increase, and now fund managers will be able to invest in companies of BSE200 and NSE 200.
After the new rules, the equity share of pension funds will increase, and subscribers will get a higher return on investment.
According to Supratim Bandyopadhyay, Chairman of PFRDA, the equity guidelines for fund managers have been prepared and now the scope of equity investment will increase and pension fund managers will be able to invest in companies of BSE200, NSE 200and the upcoming big IPOs.
PFRDA believes that there is risk in equity investment but there is potential for higher returns too. So far NPS has given a return of 11 percent in equity and at present, investment of 1 lakh crore is presented inequalities through pension funds and after the new rules, it will increase.
FDI limit has also been increased from 49 percent to 74 percent through changes in PFRDA Act, after which existing 7 pension fund managers can sell their stake to foreign partners and for the new fund managers coming via On Tap License also the foreign investment limit will be 74 percent.