NPS fund managers have more choices as investment universe expands

Investment advisors are not comfortable with the idea of a retirement product like NPS investing in IPOs

Premium

The limits on how much PFMs can invest in their group companies have been raised

Sanjay Kumar Singh Mumbai

4 min read Last Updated : Jul 29 2021 | 6:04 AM IST

The Pension Fund Regulatory and Development Authority (PFRDA) has made changes to the investment norms that pension fund managers (PFMs) of the National Pension System (NPS) must follow. According to experts, while these changes will allow PFMs to invest in a wider array of products, they could also make their portfolios more volatile.

Investment universe expanded

PFMs could earlier invest in stocks that were part of the futures and options (F&O) segment and had a market capitalisation of more than Rs 5,000 crore. This effectively meant they were able to invest in the top 100 stocks by market cap. Now, their investment

Topics : NPS NPS funds IPOs PFRDA NPS scheme National Pension System Personal Finance Pension fund managers

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in