PFRDA Lets Fund Houses Offer Bespoke NPS Pension Plans
Why in the news
PFRDA has cleared fund houses to offer customised plans, a possible overhaul of India’s $175 billion pension industry.
Before and after
| Aspect | Earlier | Now |
|---|---|---|
| Programmes per subscriber | One | Several at once |
| Asset mix | Preset by PFRDA | Bespoke products from fund houses |
Key facts
- Managers can target specific customer segments and advertise a wider return range.
- Choice of four asset classes: equity, corporate debt, government bonds, alternative investment funds.
- Fund managers can also innovate within these asset classes to meet varied investor demand.
- Earlier, limited flexibility held back subscribers from matching investments to personal goals and risk appetite.
Exam angle
- Regulator: PFRDA; scheme: NPS.
- Asset classes: four.
- Industry size quoted: $175 billion.