NPS: The returns in this depend on the fund manager and investment choice. If you feel that your money is growing less, then you can change the fund manager and investment pattern from the comfort of your home.
National Pension System: NPS is a scheme under which regular income is arranged after retirement. Under this scheme, as long as you work, a small amount is invested under this scheme and after retirement, a part is taken out in lump sum and regular pension is ensured from the remaining amount. How much pension you will get, it depends on how much amount you have deposited under this scheme and how much return has been received on it.
In this, the return depends on the fund manager and the investment choice, that is, in what proportion of your deposits, in equity, debt or bonds, etc., the fund manager is investing. If you feel that your money is growing less, then you can change the fund manager and investment pattern from the comfort of your home. HDFC Pension Management, ICICI Pru Pension Fund Management, SBI Pension Fund and UTI Retirement Solutions have given returns of more than 15 per cent, as per the data available on the PFRDA website till January 14, 2022.
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This is how fund managers and investment patterns can change online
- Login to https://cra-nsdl.com/CRA/ portal for online changes in NPS account fund manager and investment pattern. Lawn in ID is PRAN (Permanent Retirement Account Number).
- To change the investment pattern, click on the ‘Transaction Online’ tab and select either Active Choice or Auto Choice under ‘Change Scheme Preferences’. Under Auto Choice, there will be a chance to choose any one option in Conservative / Moderate and Aggressive. After selecting the option submit the request.
- To change the portfolio manager, click on the ‘Transaction Online’ tab and select ‘Change Portfolio Manager’. After this, a list of portfolio managers will appear on the screen, in which submit the request by selecting the best option according to you.
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Changes can be done offline like this
If you are not able to make changes in NPS account online then you can visit the nearest POP-SP (Point of Presence-Service Providers) office. Once there, you will get a form for Portfolio Manager and Change in Investment Pattern. Fill it and submit it there and you will be done.
There may be more opportunities for change in investment pattern
The subscriber has to select the fund manager at the time of account opening which is subject to change. At present, NPS subscribers get an opportunity to change the investment pattern twice in a financial year. However, there is talk of increasing it four times, which was informed by the Chairman of Pension Fund Regulator PFRDA in a webinar organized by Industry Bodo Assocham on NPS in the last month of December 2021 last year. Subscribers can invest a combination of government securities, debt instruments, short term debt investments and equity and related investments etc.
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One time change in fund manager approved
Subscribers are currently allowed to change the fund manager once in a financial year. Fund managers invest their money in various assets based on the choice of the subscribers. Currently, ICICI Pru Pension Funds Management Company, LIC Pension Fund, Kotak Mahindra Pension Fund, SBI Pension Fund, UTI Retirement Solutions, HDFC Pension Management and Birla Sun Life Pension Management pension fund managers are under NPS.
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