You will soon be able to opt for higher equity investment under the National Pension System’s (NPS) ‘active’ choice. The Pension Fund Regulatory and Development Authority (PFRDA) board of directors has approved increasing cap on equity investment in ‘active’ choice to 75% from current 50% for Private Sector Subscribers.
Presently there is a cap of 50% on equity investment under active choice in NPS.
A release issued by the PFRDA says that the increase in equity cap comes with a clause of tapering of the equity allocation after the age of 50 years.
PFRDA board has also approved modification in partial withdrawal rules under NPS. Partial withdrawals will now also be allowed to NPS subscribers who wish to improve their employability or acquire new skills by pursuing higher education/acquiring professional and technical qualifications.