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Now that the tension over pensions will be over, there will be this special arrangement in the NPS for the youth of the country.

Sagar Patel

By Sagar Patel

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The Pension Fund Regulatory and Development Authority (PFRDA) is preparing to introduce a New Balanced Life Cycle Fund to make the New Pension System (NPS) attractive among the youth. This will help the person build a substantial fund until retirement. Under this proposed scheme of PFRDA, a larger amount of investment can be allocated in equity funds for a longer period. Under this scheme, there will be a gradual reduction in capital investment once the shareholder turns 45, while currently this reduction begins from the age of 35.

Plan to bring a new balanced life cycle fund

In this way, the pensioner who joins the NPS will have the possibility of allocating a greater amount of investment in capital funds until the age of 45. This will help them build a good fund until retirement. PFRDA Chairman Deepak Mohanty on Friday said we will create a new balanced life cycle fund in the second quarter (July-September) to allocate investments in equity funds over a longer period. This will allow for a greater allocation of stock funds over a longer period of time.

This will be beneficial

He said in a program related to Atal Pension Yojana that under this new NPS scheme, there will be a gradual reduction in capital investment from the age of 45 years, while currently this reduction starts from the age of 35 years. If this happens, people who opt for NPS will be able to invest more amounts in equity funds for a long time. This will increase the pension fund in the long term and at the same time establish a balance between risk and return.

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Referring to Atal Pension Yojana (APY), Mohanty said that in the last financial year 2023-24, 1.22 lakh new shareholders joined APY. This is the highest figure so far in a single financial year since the scheme was launched. He said 1.3 million shareholders are expected to join this scheme in the current financial year. According to PFRDA, the total number of shareholders joining APY is expected to cross 6.62 crore by June 2024.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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