Use greater flexibility offered by pension scheme judiciously

From FY18, subscribers will be able to change investment option & asset allocation twice a year

Until now, subscribers in the National Pension Scheme (NPS) could change their investment option (active or auto choice) and asset allocation (the percentage allocation of your investments to different asset classes such as equities, corporate bonds, government securities and alternative investments) once in a financial year. According to a recent circular from the Pension Fund Regulatory and Development Authority (PFRDA), from April 1, investors will be allowed to change these options twice a year. However, subscribers will still be able to change their pension fund manager only once. Experts say that while this move will provide greater flexibility, subscribers need