NPS Scheme: Now NPS schemes will indicate risk profile: Here’s how to check


In order to create awareness among investors about the risk involved in the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has established rules that outline six risk levels.

According to a circular released by the PFRDA, “The investment under various asset classes of the Schemes of Pension Funds would involve different level of risks for subscribers and, therefore, it is desired that the adequate disclosure of the risks involved in various Schemes of NPS are made available for awareness of the subscribers.”

These risk levels will help indicate proper information of the risks associated with various NPS Schemes before stepping into it. The new rule will be in effect for all existing schemes in categories E, C, G, and A as of July 15, 2022.

According to the PFRDA circular, “The investment under various asset classes of the Schemes of Pension Funds would involve different level of risks for subscribers and, therefore, it is desired that the adequate disclosure of the risks involved in various Schemes of NPS are made available for awareness of the subscribers.”

Funds eligible for risk profiling

The Authority has ruled that Pension Funds managing Tier I and Tier II Asset Classes Equity (E), Corporate Debt (C), Government Securities (G), and Scheme A must keep and disclose risk profile of the Schemes.

The risk profiling shall have following six levels of risk for the schemes:

  • Low Risk
  • Low to Moderate Risk
  • Moderate Risk
  • Moderately High Risk
  • High Risk, and
  • Very High Risk

Things to note about risk profiling in NPS

  • Based on the scheme characteristics, Pension Funds shall assign risk level for the Schemes E-Tier 1, E-Tier 2, C-Tier 1, C-Tier -2, G-Tier-1, G- Tier-2 and Scheme A.
  • Within 15 days after the closing of each quarter-ending month, risk profiling will be posted on the respective Pension Funds’ websites under the ‘Portfolio disclosure’ section.
  • Risk profiling will be examined on a quarterly basis, and any changes in risk profiles will be reported on the Pension Funds’ websites, as well as communicated to the NPS Trust for updating on the NPS Trust’s website.
  • Pension funds will publish on their websites the risk level of schemes as of March 31 of each year, as well as the number of times the risk level has changed over the year.
  • This circular will be in effect for all existing schemes in categories E, C, G, and A as of July 15, 2022. However, before the effective date, Pension Funds may choose to accept the provisions of this Circular.



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