NPS: What will the new Balanced Life Cycle Fund offer?

National Pension Scheme (NPS) subscribers will soon have a new string to their bow. A new NPS investment scheme, the Balanced Life Cycle Fund, will likely launch between July and August, according to PFRDA chairman Deepak Mohanty, as quoted in media reports. The new automatic option will allow subscribers to keep 50 per cent of their investments in equity funds for a longer period of up to 45 years, higher than the current limit of 35 years offered in other existing schemes. How will it differ from the rest? The features of the new investment option are expected to be mostly similar to other auto schemes under the NPS. The key parameter that will distinguish it from the rest is the age threshold, after which the scheme's equity allocation will begin to taper. Simply put, under the Balanced Life

This article was originally published on June 25, 2024.