InvestorQ : How are the funds contributed by subscribers managed under the National Pension Scheme (NPS)?
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How are the funds contributed by subscribers managed under the National Pension Scheme (NPS)?

Answer
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1 year ago


The funds contributed by subscribers are invested by the PFRDA-registered Pension Fund Managers (PFMs) as per the investment guidelines provided by PFRDA. The PFRDA’s investment guidelines are framed in such a manner that there is minimal impact on subscribers’ contributions even if there is a market downturn.

This is done by having a judicious diversification of investment instruments like government securities (G-Sec), corporate bonds and equities. Currently, there are eight Pension Fund Managers (PFMs) who manage subscribers’ funds in line with the option selected by the subscriber.

Currently, subscribers can select any one of the following eight pension funds:

1. ICICI Prudential Pension Fund

2. LIC Pension Fund

3. Kotak Mahindra Pension Fund

4. Reliance Capital Pension Fund

5. SBI Pension Fund

6. UTI Retirement Solutions Pension Fund

7. HDFC Pension Management Company

8. DSP Blackrock Pension Fund Managers