PFRDA - Looks like a great start , Good option for all

PFRDA would be good scheme for everyone to enrol. The option to invest in equity is a win-win situation. It can potentially increase the equity penetration in India which is very low and the investor may benefit from the higher earning potential of equity. This is definitely a BIG first step. All of us must seriously consider this. With exemption for investment available under 80c and governtment planning to exempt the returns from tax ( like PPF,EPF and GPF), this seems an attractive option.
News - Source ET "The pension fund regulator, which is extending the new pension scheme (NPS) to everyone in the country on Friday, will review the 50% Monitor your financial healthAchieve fin goals with proper planning limit on investing people’s savings in equities a year from now.
The Pension Fund Regulatory Development Authority (PFRDA) has now stipulated that only half of an individual’s savings can go into equities even if he opts for a high-risk high-return investment. The auto (default) choice for persons who do not make an investment choice also caps the equity exposure at half of the savings.
A committee chaired by HDFC chairman Deepak Parekh that advised PFRDA in framing the investment norms had recommended that risk-hungry subscribers should have the freedom to invest all their savings in equities. It had also recommended a 65% equity exposure for auto choice. Investment in stocks is considered appropriate for long-term investments such as pension plans.
PFRDA chairman D Swarup told ET that the equity exposure limit was reduced based on the recommendations of the board of trustees of the NPS and the advice of the government. “This cap would be reviewed after a year. The Deepak Parekh panel had also recommended a review of the investment pattern after one year,” he said. Besides, the world over, pension plans do not allow 100% equity investments. In the US, equity exposure is allowed in the range of 50-70%."
what is PFRDA, PRANA, how to invest in PFRDA, who can invest, how to open an to start pension investment, who to approach, is it a good scheme, benefits of PRANA, PFRDA, choice of fund managers,

1 comment:

Vinay said...


Can you list out all investment instruments which give tax-free returns (on maturity)?



Simple Indian Food - Feel @home ( Best veg food blog )

" A Ship is safe when it is in Harbour, but the ship was not built for that"


These are just opinions/ ideas exchanged. No one can claim us responsible for any investment failures /losses based on the ideas expressed here.

Feel free to mail your queries/ comments to