NPS: Risk will have to be disclosed before investment, and the fund manager will have to give a rating of the scheme

Posted on 11th Jul 2022 by rohit kumar

Now another new thing has been added to this scheme for the investors of the National Pension System (NPS). Before investing in them, it will be known how much risk is involved in them. NPS regulator Pension Fund Regulatory Development Authority (PFRDA) recently issued a circular in this regard. It said that NPS investments will now have to be risk-averse. This will make it easier for the customers to decide on investing. Based on this decision, it will help them to understand whether they will invest in various schemes of NPS or not. In this, 6 types of risks have to be mentioned. These include low risk, low to medium, medium, high to medium, high risk, and very high risk.

 

where to check risk

 

According to the circular, those who manage pension funds in number one and number two cities will have to disclose the risk. This includes Scheme A along with equity, corporate debt, and government securities. All risk matters will be available on the website of the pension fund concerned. The portfolio disclosure column will show the risks associated with all the schemes. It has to be shown on the 15th day of the last month of every quarter.

 

 

debt risk

 

The investment instrument will have a range from 0 to 12. In this, A credit value would mean zero. This means that the one with a zero rating would be the best investment instrument. Whereas the one with a rating of 12 will have the worst credit quality. That is, investing in it will have the highest risk. NPS Trust will review this risk profile every quarter. Corrections will have to be displayed on the website of Pension Fund. The information will also have to be given to the NPS Trust.

 

The new order will be applicable from July 15

 

The circular issued by PFRDA is to be implemented from July 15. This will apply to all existing schemes. Under this, the risk level of the schemes has to be stated on 31st March of every year. Along with this, the number of times the level of risk was changed during the year, will also have to be reported in it. Recently, NPS Trust has given another facility to the investors. Accordingly, you can get solutions to risk and investment-related problems through WhatsApp. For this, investors can send a message to 8588852130.

 

everyone can invest

 

Earlier this scheme was only for government servants. But now every Indian can invest in it. This scheme is also very helpful in saving on tax. This is the retirement plan of the government.

 

It was started by the Central Government on January 1, 2004. After the year 2009, it was also opened to the private sector.

 

After retirement, the employee can withdraw a part of the fund and the rest is received as regular income after retirement.

 

Investors will benefit from the decision

 

Actually, till now investing in any scheme of a mutual fund, the fund house had to inform about the risk associated with it. With this, before investing, investors got to know how much risk is or is not in that scheme. Because of this, now it has been implemented in NPS as well so that there is no risk on one's investment and he/she takes a wise investment decision. This will benefit the investors.

 

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