Good news for NPS subscribers! Soon, change investment pattern 4 times in a financial year

PFRDA is soon going to allow NPS investors to change their investment pattern up to four times in a financial year.

New Delhi: In what be good news for subscribers of the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) is soon going to allow the investors to change their investment pattern up to four times in a financial year. 

According to PFRDA Chairman Supratim Bandyopadhyay, the subscribers have been demanding an increase in investment leeway. Till now, subscribers can change the investment pattern twice in a financial year under the NPS scheme.  

Subscribers of NPS to get more investment leeway@DFS_India @fpjindia #PFRDA #NPS #Investment pic.twitter.com/FFLcqx5enX

— PFRDA (@PFRDAOfficial) January 17, 2022

PFRDA Chairman Supratim Bandyopadhyay had earlier said that, currently, subscribers can change the investment choice twice a year. 

“Now, in a very short period of time, we are going to increase it to four times because there are requests that you allow more number of times (to change the investment pattern)," he was quoted as saying. 

PFRDA allows investors to allocate their NPS investments in a fixed ratio between investment opportunities such as government securities, debt instruments, short-term and long-term debts, and equities, among others. 

However, there are terms and conditions to the allocation, depending on the type of subscribers. For example, employees working with central or state governments cannot allocate more funds to equities. On the other hand, employees of private firms are allowed to invest up to 75% of their NPS investments in equities. Also Read: Union Budget 2022: Experts urge govt to introduce permanent dispute resolution process on the lines of Vivad se Vishwas Scheme 

Investors can change their investment ratios accordingly. According to the PFRDA chairman, NPS is a long-term investment product that can be used to build a pension corpus. Investors should not treat NPS as akin to other investment instruments such as mutual fund schemes, he was quoted as saying by Mint. Also Read: Better.com CEO who fired 900 staffers over Zoom call back at work, but employees reportedly unhappy