The investment made in National Pension Scheme means NPS also carries risk.
Under these rules made by PFRDA, 6 levels of risk have been created.
Now essentially give information about the risk profile of pension fund schemes.
New Delhi. Money kept in the house is also prone to theft. You must have read and heard many stories of money being stolen from digital hacking in banks. There is open risk in the stock market. Overall, it can be said that where there is money, the risk automatically goes there today. But the common citizen has faith in the schemes of the government. They feel that the return on money invested in government schemes will undoubtedly be less, but it will be safe. But keep in mind, some government schemes also have risks.
Yes, we are talking about National Pension Scheme. National Pension Scheme means your money invested in NPS also has some risk or the other. Having risks is not a matter of much risk, but it is a big thing for the investor not to know about that risk. Imagine that you are investing somewhere and you do not know anything about its risk. But, if you know about the risk in advance then you will not be worried in future.
After all what is the risk in NPS
Some important changes were made in the National Pension System from 15 July 2022. As per these changes, pension funds will now have to disclose the risk profile of all NPS schemes on their websites within 15 days before the end of every quarter. The move is aimed at helping NPS subscribers decide which of the various assets they should invest in. Investors have to be informed about this so that they can decide to invest for themselves, so that they can get maximum returns.
Under these rules made by PFRDA, 6 levels of risk have been created. In these, the levels of Low, Low to Moderate, Moderate, Moderately High, and Very High have been made. This risk profile will be analyzed on a quarterly basis. It has to compulsorily disclose the risk profile of the schemes to Tier-1 and Tier-2, Asset Class Equity (E), Corporate Debt (C), Government Securities (G) and Pension Fund with Scheme A.
How to Know the Risk on Pension Funds
It was told in the issued circular that a credit risk value of 0 to 12 will be given on the basis of the conservative credit rating of the instrument. Here 0 credit value indicates high credit quality, while 12 credit value indicates lowest credit quality. You can check your risk profile by visiting the Pension Fund website.
FIRST PUBLISHED : August 03, 2022, 16:09 IST