NPS Rule Changes Today: Changes are being made in the National Pension System from today i.e. 15th July 2022. Now investing in NPS will be easier and safer than before. In a circular issued by the Pension Fund Regulatory and Development Authority to investors, rules were framed for reporting the NPS risk profile. Its purpose is to spread awareness among investors.
Investors have to be informed about this so that they can decide to invest for themselves so that they can get maximum returns. The pension fund will have to share the risk profile of all the schemes on the website within 15 days on a quarterly basis. PFRDA has framed rules to provide information about the risk profile of investors.
Know the level of risk
Under these rules framed by PFRDA, 6 levels of risk have been created. In which the levels of Low, Low to Moderate, Moderate, Moderately, High, and Very High have been created. This risk profile will be analyzed on a quarterly basis. It has to compulsorily disclose the risk profile of the schemes to Tier-I and Tier-II, Asset Class Equity (E), Corporate Debt (C), Government Securities (G) and Pension Fund with Scheme A.
lowest credit quality
According to the circular issued by PFRDA, a credit risk value of 0 to 12 will be given based on the conservative credit rating of the instrument. Here 0 credit value indicates high credit quality while 12 credit value indicates lowest credit quality.
How to check risk profiling
The risk profile will be shared on the respective pension fund’s website under Portfolio Disclosure section in the last 15 days of every quarter to check your profiling to see if it is at risk. The risk level will be shared on the pension fund’s website once in a year on March 31. If the risk level has been changed more than once in a year or even more, the same will be updated and shared on the website.