2 years, 10 months ago

NPS To Soon Have Risk Rating System; Know How You Should Pick Best Pension Scheme

Schemes under the National Pension System will soon have ratings that will inform investors about the level of risk involved in a particular scheme that they are opting to invest in. 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,” the PFRDA has said in the circular. Based on the scheme characteristics, pension funds shall assign risk levels for the Schemes E-Tier 1, E-Tier 2, C-Tier 1, C-Tier -2, G-Tier-1, G- Tier-2 and Scheme A, according to the circular. It added that 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.

News 18

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