Fintotal News Analysis | Government Opens Doors to More Players for Managing Pension Fund
Government Opens Doors to More Players for Managing Pension Fund
Ruby Jacob, 01 Aug 2012

The pension funds scene in the country doesn't have much to be hailed about. Yet in an attempt to boost the National Pension Fund (NPS), pension fund regulatory and development authority (PFRDA) has loosened the noose around management of pension funds under NPS. It has revised norms to allow all eligible players to register as Pension Fund Managers for schemes of non-government and private sector subscribers.

NPS started in 2004 as compulsory retirement savings scheme for government employees was thrown open for the general public as voluntary retirement savings scheme in 2009. But it failed to impress most people. Presently NPS schemes are managed by 6 appointed pension fund managers (PFM) – LIC Pension Fund Ltd, SBI Pension Funds Ltd, UTI Retirement Solutions Ltd, IDFC Pension Fund Management Co Ltd, ICICI Prudential Pension Funds Management Co Ltd, Kotak Mahindra Pension Fund Ltd, Reliance Capital Pension Fund Ltd.

According to new guidelines issued by PFRDA, any eligible player can register to participate as PFM. PFMs have also been given the flexibility to fix their own fees and charges for fund management and distribution, subject to an overall cap laid down by PFRDA.

Existing fund managers have done no interesting job for NPS subscribers. Although it is true that NPS returns are not guaranteed and that they are market based, returns on schemes have had wide fluctuations ranging from 23.51% to -3.15% over the past three years, on schemes for the unorganized sector. In each of the three categories E, C and G, of pension funds managed by the 6 managers, the spread of returns generated has been quite wide. The government hopes that entry of more fund managers will make the structure more competitive which will work for the benefit of subscribers.

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling