NPS: Select and switch fund managers based on long-term performance

Monitor seven or 10-year performance and switch if underperformance persists for two years

Subscribers to the National Pension System (NPS) could earlier have only one pension fund manager (PFM) across all four asset classes.

By a circular dated November 22, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted existing subscribers to NPS All Citizens Model and NPS Corporate Model (Tier-I funds) and all subscribers to Tier-II funds to have separate PFMs in three asset classes — equity (E), corporate bonds (C), and government bonds (G).

New subscribers will be able to avail of this facility three months after registering.

More choice

This step has been taken as part of PFRDA’s goal