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PFRDA to bring in retirement advisors

PFRDA is also talking to the government about the possibility of introducing inflation indexed instruments in which NPS can invest. The authority is also planning to bring in more fund managers under its fold.

By: ENS Economic Bureau | Mumbai |
August 13, 2016 3:16:03 am

The Pension Funds Regulatory and Development Authority (PFRDA) has decided to bring in trained retirement advisors as a measure to boost patronage for pension funds, particularly the National Pension Scheme (NPS) and increase the coverage.

“The notification for this purpose was issued in December 2015 and it will become operational in a month’s time,” Hemant Contractor, chairman of PFRDA, said at a CII summit. Earlier NPS was being distributed through only post offices and banking system.

The PFRDA Chairman said, “We cannot charge higher amounts of fee on the pension clients like it’s done for insurance and mutual fund products. We are trying to bring down the initial costs and make the pension products attractive to subscribers.” There are over one crore customers for NPS, which has a total corpus of Rs 1.38 lakh crore. The average returns of NPS has been around 10 per cent per annum for a few years, which make the product attractive.

PFRDA is also talking to the government about the possibility of introducing inflation indexed instruments in which NPS can invest. The authority is also planning to bring in more fund managers under its fold.

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