Noida, July 8 (APAC Media): Employees of Central Autonomous Bodies (CABs) covered under the National Pension System (NPS) can now choose two additional investment options, a move aimed at providing greater flexibility in retirement planning.
The government has extended the additional NPS investment choices available to central government employees to eligible employees of central autonomous bodies.
The new options include LC-75-High and the Aggressive Life Cycle Fund, which allow subscribers to select investment strategies based on their risk preference and long-term financial objectives.
The LC-75-High option allows equity exposure of up to 75 per cent, offering higher participation in market-linked instruments for subscribers with a longer investment horizon and a higher risk appetite.
The Aggressive Life Cycle Fund, earlier known as the Balanced Life Cycle Fund (BLC), provides equity exposure of up to 50 per cent.
Under this option, equity allocation is gradually reduced after the subscriber reaches 45 years of age to balance growth potential with risk management.
The latest decision expands the range of investment choices available to CAB employees under NPS and brings them at par with central government employees in terms of fund selection flexibility.
Subscribers will continue to have access to existing NPS investment choices, including the auto choice facility, where asset allocation changes automatically based on age and investment profile.
Under the auto choice option, contributions are allocated among equity, corporate debt and government securities. The exposure to equity is reduced gradually as the subscriber approaches retirement to limit the impact of market volatility.
The government has advised administrative ministries and departments to communicate the availability of these additional options to central autonomous bodies under their control.
The expansion of investment choices is expected to help NPS subscribers make retirement decisions based on their individual financial goals, investment horizon and comfort with market risks.
The National Pension System is a defined contribution retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It enables subscribers to accumulate retirement savings through regular contributions during their service period.
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Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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