Customised plans for NPS allowed

AS PER RISK APPETITE

- PRASANTA SAHU

IN A MOVE aimed at popularis-ingthe National Pension System among the employees in the non-government sector, the Pension Fund Regulatory and Development Authority (PFRDA) on Tuesday permitted fundmanagers tocustomiseand offer multiple schemes with equity exposure up to 100% to private-sector subscribers.

The fund managers could devise the schemes depending on the persona of corporate employees or gig-workers.

This contrasts with the current system, where PFRDA allows one scheme per subscriber with predetermined investment options, with equity exposure capped at 75%. Private-sector participation in NPS has grownata fast paceinrecent years, but still it accounts fora fifth of the total assets Under Management (AUM).