Pension funds will now soon be able to invest in IPOs and stocks. According to the top official of the pension sector regulator PFRDA, pension fund managers will now be able to take the decision of investing in IPOs and shares. At present, pension fund managers can invest only the equity component of the fund in the shares of companies that trade in futures and options with a market capitalization of Rs 5000 crore.
You can also invest in IPO, FPO, Offer for Sale
Officials associated with regulators say that this rule has limited the options of fund managers. With the new rule, they will be able to earn higher returns as these managers have given returns of 11.31 per cent by investing in stocks since the introduction of NPS. He gave the example of Avenue Supermarket in this case. Due to restrictions, fund managers were not able to invest in its shares. PFRADA Chairman Supratim Bandopadhyay said that in the next two-three days, an announcement can be made to increase the scope of investment by the fund managers. According to the new rule, pension fund managers will be able to invest in shares of top-200 companies in NSE and BSE in addition to IPO, FPO, offer for sale of companies.
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Good returns from investing in equity
Bandopadhyay said that he is personally in favor of more equity investment. According to Bandopadhyay, the investment in shares from the pension fund has given a return of 11.31 percent so far. The return on investment in corporate debt has been 10.21 percent and investment in government security has been 9.69 percent. The total number of NPS subscribers reached 4.37 crores. Out of these 2.90 crore subscribers are under Atal Pension Yojana.
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