Category: Personal Finance

Higher Interest Rates Than SBI FD, Check This New FD Scheme Here

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Investment

oi-Vipul Das

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Customers can now open Fixed Deposit accounts with PayTM Payments Bank. By contributing an initial amount of 100, one can start a Paytm Payments Bank FD account. Paytm Payments Bank Limited (PPBL) has partnered with IndusInd Bank to provide customers with the option of opening an FD account online. Customers who want to break their FD prematurely will not be penalised by PPBL. According to Paytm Bank’s website, as per RBI licensing and operating regulations for Payments Banks, a customer’s overall balance at the end of the day should not surpass Rs 2 Lakh. Let’s know about the features of the scheme below:

Features of Paytm Payments Bank’s fixed deposit

Features of Paytm Payments Bank’s fixed deposit

  • The maturity period of 356 days will be applied while booking FDs.
  • An interest rate of 6% will be provided upon maturity.
  • An auto-renewal option on maturity will also be provided.
  • You can redeem your FD at any time, and the principal amount plus interest, minus any Tax Deduction at Source (TDS), will be paid to your account instantly.
  • No interest will be paid if your FD is closed prematurely before the minimum period of 7 days has elapsed.
  • On maturity, the Fixed Deposit will be automatically renewed.
  • If you redeem your fixed deposit before it matures, you won’t be penalised.
  • TDS will be withheld from interest payables, if applicable, according to Income Tax rules.
  • Non-furnishing of PAN would result in higher TDS deduction.
  • In the scenario of renewed deposits, the new deposit amount consists of the initial deposit amount including interest minus any Tax Deducted at Source (TDS).
  • If the customer has been or will become a senior citizen on renewal day, Paytm Bank shall automatically renew the FD both principal including interest on the senior citizen scheme rather than the scheme under which it was previously registered.

Key details of Paytm Payments Bank’s fixed deposit

Key details of Paytm Payments Bank’s fixed deposit

Product Fixed Deposit
Maturity Period 356 days
Interest on Maturity 6%
Auto-Renewal On Maturity
Redemption Instant
Charges when redeemed before maturity Zero charges (No penalty)
FD details Available in passbook
Source: paytmbank.com

Fixed deposit interest rates of Paytm Payments Bank

Fixed deposit interest rates of Paytm Payments Bank

The interest income is determined using the IndusInd bank’s fixed deposit rate in effect at the time the FD was opened.

Tenure Regular FD Rates in % Senior Citizen FD Rates in %
7 days to 14 days 2.75 3.25
15 days to 30 days 2.75 3.25
31 days to 45 days 3.00 3.50
46 days to 60 days 3.50 4.00
61 days to 90 days 3.75 4.25
91 days to 120 days 4.00 4.50
121 days to 180 days 4.50 5.00
181 days to 210 days 5.00 5.50
211 days to 269 days 5.25 5.75
270 days or 354 days 5.50 6.00
355 days or 364 days 5.50 6.00
1 Year to below 1 Year 6 Months 6.00 6.50
Source: IndusInd Bank

Story first published: Saturday, June 12, 2021, 9:57 [IST]



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RBI extends risk-based internal audit system to housing finance firms

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To ensure smooth transition from the existing system of internal audit to RBIA, the companies will have to constitute a committee of senior executives with the responsibility of formulating a suitable action plan, RBI said.

The Reserve Bank of India (RBI) on Friday extended the risk-based internal audit (RBIA) system for housing finance companies (HFCs) to enhance the quality and effectiveness of their internal audit system. The provisions will apply to all deposit-taking HFCs and non-deposit-taking HFCs with asset size of Rs 5,000 crore and above. Such HFCs have been asked to put in place an RBIA framework by June 30, 2022.

In February this year, RBI had issued a circular mandating the RBIA framework for select non-banking financial companies (NBFCs) and urban co-operative banks by March 31, 2022. RBI governor Shaktikanta Das had earlier called upon the financial sector entities to give the highest priority to quality of governance, risk management and internal controls as these are the first line of defence in matters related to financial sector stability.

Dinesh Anand, national managing partner, risk and private equity, Grant Thornton Bharat, said, “Given the regulatory focus around harmonisation of regulations between banking and NBFCs (non-bank financial companies) and the increased focus on governance within financial services, a risk-based internal audit is a step in the right direction.” This will also help build investor confidence further, especially given the increased interest of private equity players in this space, he added.

Similarly, Sonam Chandwani, managing partner at KS Legal & Associates, said that NBFCs, UCBs and HFCs face similar issues in today’s economic climate, however, the effectiveness of the circular is contingent on the nitty-gritties laid down in the shadow financing sector.

RBIA will be linked to the organisation’s overall risk management framework. This will provide an assurance to the board of directors and the senior management on the quality and effectiveness of the organisation’s internal controls, risk management and governance-related systems and processes.

To ensure smooth transition from the existing system of internal audit to RBIA, the companies will have to constitute a committee of senior executives with the responsibility of formulating a suitable action plan, RBI said. The committee may address transitional and change management issues and should report progress periodically to the board and senior management. According to the guidelines, the boards of companies are primarily responsible for overseeing their internal audit functions.

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Ways To Buy Unlisted Shares Or Shares Of the Company That May Go Public In India

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1. Pre-IPO funds:

Pre-IPO funds provide an opportunity to invest in the company even before it goes public. These funds are structured similar to AIFs or Alternative Investment Funds.

Suitable for: Super wealthy/Large investors

Minimum investment ticket size: In eight figures or Rs. 1 crore

First AMC to come up with dedicated Pre-IPO funds: IIFL AMC

Return from Pre-IPO funds: As per IIFL AMC which manages an asset pool of over Rs. 10,000 crore in pre-IPO funds, the returns from the instrument have been in the range of 10-15%. For the listed portfolio, the IRR or internal rate of return comes to be between 16-30 percent.

2. Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs):

2. Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs):

This is another route that can be taken by HNI, NRI and foreign investors for buying unlisted securities as investment into these schemes or funds involve a huge sum of money. Financial entities managing these schemes buy into unlisted shares and capitalize on the lower pre-IPO valuation for generating higher return as and when the listing happens and valuations surge.

3. Buying unlisted shares directly via intermediaries such as brokers, wealth management firms or specialized start-ups:

3. Buying unlisted shares directly via intermediaries such as brokers, wealth management firms or specialized start-ups:

You can open a demat account with these intermediaries such as brokers or for that matter startups for buying unlisted shares. Minimum investment size for investment into unlisted securities via this route is Rs. 50,000 for every company and while the payment has to be made on an upfront basis, the delivery is done on the basis of T+3 days i.e after 3 days of buying the securities, so there is counter-party risk involved in the process that investors need to take a note of.

4. Buying unlisted shares from employees:

4. Buying unlisted shares from employees:

Some large scale organizations offer ESOPs or employee stock option plans to their employees via which they get equity ownership in the company. These ESOPs then allow employees to buy shares of the company at a pre-specified rate and after a pre-defined period. Now if employees wish to redeem or sell off their unlisted shares holding then you can purchase unlisted equity from them. For the same also, you would need to approach brokerage firms as they are acquainted with which unlisted shares are on offer.

5. Via Private Placement

5. Via Private Placement

There is a procedure referred as Private Placement via which promoters of the company offer/ place their stake in the company for sale. The unlisted securities are kept with wealth managers and bank and so investors intending to invest in unlisted securities can do so via private placements. Also, via this route you can even own a larger stake in the company as these promoters promoting the company generally have a high ownership in them.

6. Buying unlisted shares from crowdfunding platforms:

6. Buying unlisted shares from crowdfunding platforms:

Several crowdfunding platforms are available that allows individuals to invest in the equity shares of unlisted companies. Now as you are investing in the business via crowdfunding route, you are indirectly supporting the business venture and in a case if it fails to sustain, you shall be at loss, so investors need to keep note of this investment risk in mind.

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This Bank Offers Upto Rs. 5 Lakh Personal Loan To Covid 19 Patients At 8.5%: Here Are The Details

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Personal Finance

oi-Roshni Agarwal

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The public sector lender on its twitter handle State Bank of India @The Official SBI said today “it gives us immense pride to announce the launch of KAVACH Personal Loan by SBI. Avail at 8.50% p.a. only and take guard of your expenses towards COVID treatment”.

This Bank Offers Upto Rs. 5 Lakh Personal Loan To Covid 19 Patients At 8.5%

This Bank Offers Upto Rs. 5 Lakh Personal Loan To Covid 19 Patients At 8.5%: Here Are The Details

In a 12 seconds video that has been also attached in the tweet, the bank familiarizes on the product.

Features of SBI Kavach Personal Loan for Covid 19 patients

1. Lowest interest rate at 8.5% per annum
2. Further in the video clipping, the bank mentions # In This Together
• Loan amount- Maximum 5 lakhs (collateral free)
• Repayment in 60 months including 3 months moratorium period
• Covid positive report a pre-requisite to avail the loan

Launched by the bank’s chairman Dinesh Khara, Kavach Personal Loan by SBI will help customers to “avail loans up to Rs 5 lakh at an effective interest rate of 8.5 percent per annum for 60 months which is inclusive of three months moratorium”, said a statement issued by the bank.

Also the banker said the Kavach personal loan is being provided “under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment.

The bank also made a clarification that all the expenses incurred towards the treatment of Covid 19 shall also reimbursed by the bank as per the scheme details.

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Story first published: Friday, June 11, 2021, 23:29 [IST]



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Axis Mutual Fund Launches ‘Axis Quant Fund’, Should You Invest?

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Features of Axis Quant Fund

The scheme’s benchmark would be the S&P BSE 200 TRI, with a minimum investment amount of Rs 5,000 and subsequent investments in multiples of Rs 1. The scheme’s specifics are as follows.

  • The fund employs a fundamental data-driven bottom-up approach stock selection strategy that is backed with a systematic investment method. The fund’s goal is to build a portfolio of 40-60 stocks by selecting equities using quantitative criteria and rebalancing the portfolio regularly.
  • The fund will choose stocks based on core metrics such as growth, value, momentum, and quality, which will be screened using rule-based standards.
  • The fund will distribute 80-100 per cent of its assets to equity and equity-related instruments of identified firms using a quantitative methodology, 0-20 per cent to other equity and equity-related securities, 0-20 per cent to debt and money market instruments, and 0-10 per cent to REIT and InvIT units.
  • With a 5-year investment horizon, the product is appropriate for investors seeking long-term wealth gain.
  • This fund can be purchased through Axis Mutual Fund Online, Axis Mutual Fund Mobile App, Mutual Fund Utility, Channel Distributors, Stock Exchange Channels, and other Online Mode or Mutual Fund Investment apps.
  • Investors interested in SIPs can begin with a minimum SIP of Rs. 1,000/- and in multiples of Rs. 1/- every month. There is no upper limit to invest during or after the NFO period. For further purchases on an ongoing basis, the minimum amount would be Rs. 100 and in multiples of Rs. 1/- thereafter.
  • During the NFO period and thereafter, the minimum initial investment for purchase/switch-in would be Rs. 5,000, and in multiples of Rs 1.
  • The scheme, according to the fund house, would strive to develop an all seasons portfolio that includes the best of fundamental styles: quality, growth, and valuation. The scheme will enable the fund manager to build a portfolio that balances risk and return goals. The scheme also seeks to choose a portfolio of high-quality stocks with outstanding upside potential but low pricing.
  • The fund will have a diverse portfolio spanning sectors and market size.
  • The NFO will be open from June 11 till June 25.

Exit Load and Fund Managers

Exit Load and Fund Managers

Deepak Agrawal and Hitesh Das will manage the fund. Mr Deepak Agrawal is an Equity Research Analyst with over 15 years of experience in the financial markets. Mr Hitesh Das, on the other hand, has over 9 years of expertise in financial markets. If the investment is redeemed or transferred after 12 months from the date of allocation, there will be no exit load. However, if the investment is redeemed or transferred within 12 months, there will be no exit load on the first 10% of the investment and a 1% exit load on the outstanding investment.

Should you invest?

Should you invest?

Returns from rules-based strategies are mostly influenced by disclosure to equity risk variables, particularly price, volatility, quality, and numerous others. Rules-based approaches are particularly appealing to investors who have price limitations, an intolerance to huge risk in concentrated portfolios, or a wish to minimise market vulnerability over the long term with low-volatility assets. A concentrated portfolio includes a few different assets to achieve a certain degree of diversity. A concentrated portfolio may raise your risk, but it also increases your return. On the other side, a fund house uses an NFO to generate funds from the investors in order to acquire market instruments such as equity shares, bonds, and so on. NFOs, like stock market IPOs, are meant to raise funds for the instrument or scheme to engage new and more investors. Historically, NFO investors have seen considerable raise upon listing because investors can purchase these funds at the fund’s existing net asset value (NAV) after the expiry of the NFO period. A new mutual fund or new fund offer may undoubtedly allow you to diversify your portfolio, but on the other hand, an NFO has no past history of performance or loss, which is a significant risk. So, before investing in an NFO, we recommend that investors should look at the AMC’s track record, the purchase price, and the fund’s terms and conditions.



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Bitcoin ruling roils crypto world seeking regulatory clarity, BFSI News, ET BFSI

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By Vildana Hajric and Yakob Peterseil

International banking regulators’ decision to classify Bitcoin as the riskiest of assets dragged cryptocurrencies further into the mainstream financial world.

It also made it extremely costly for banks to hold digital tokens on their balance sheets, potentially delaying crypto’s wider adoption.

The Basel Committee on Banking Supervision proposed that a 1,250 per cent risk weight be applied to a bank’s exposure to Bitcoin and certain other cryptocurrencies. Bitcoin jumped on the announcement, then erased the gains. It was trading around $36,200 as of 10:30 a.m. in Hong Kong on Friday.

“The only consistency has been the volatility — it’s been big spikes, tons of enthusiasm, followed by big selloffs,” Ross Mayfield, investment strategy analyst at Robert W. Baird & Co., said of Bitcoin’s moves. “If you believe in it you’re probably to stomach the volatility, but if you’re just in it because it seems like the hot way to get a quick buck, that volatility is going to be hard to deal with.”

The ruling sparked a bevy of reactions across Wall Street and other financial centers worldwide. Here’s a sampling:

Luke Sully, CEO at treasury technology specialist Ledgermatic:
“It’s a piece of news that both advocates and critics of Bitcoin will declare as a win. It demonstrates that Bitcoin is now a recognized asset class with risk management parameters for the banks, but these same parameters could be a potential deterrent given the onerous capital requirements that may make it an unpalatable business,” he said. “There are a few underlying assumptions in this risk weighting, the most obvious being that the price may go to zero and investors could lose their full allocation. The capital requirements don’t protect the banks clients from transaction, settlement and FX volatility either.”

David Tawil, president of ProChain Capital, a crypto hedge fund:
To me, this whole thing, along with the IMF, is just a way for those entities to get involved in the conversation. In terms of putting these requirements it’s going to go ahead, and at least for now, take traditional banks that are traditional regulated by these regulatory entities essentially out of this game and that will allow for more and more alternative players, who are not regulated, to go ahead and to pull further ahead,” he said. “A regulator has very little upside and enormous downside — it’s like being a policeman. You want to protect people. So the furthest you can go in terms of lodging measures that stop activity, the better. And so, I think that they are for the first time inserting themselves. This certainly does not mean the end of cryptocurrency, the end of Bitcoin.”

Marc Chandler, chief market strategist at Bannockburn Global Forex:
“I don’t think these things are good or bad themselves — it depends on what the objective is,” he said. “It’s not decentralized, it’s highly concentrated. Crypto was born in an age in which we had very extreme disparities of wealth and income — how can it not reflect that? The bulk of Bitcoin that’s owned by wallets have more than 100 Bitcoins, that’s more than $300,000 — how many Americans have $300,000 to put into crypto as opposed to retirement money?”

Matt Maley, chief market strategist for Miller Tabak + Co.:
“Obviously tougher capital requirements cause banks to have more capital on hand — that can have an impact on their earnings. The committee is saying because of risks involved — cryptocurrencies are very volatile — you have to have more capital on hand to protect against declines,” he said. “If it’s going to cost banks more to hold these cryptocurrencies on their books, they’re theoretically going to be less likely to hold the same kind of size as they otherwise would.”

Wells Fargo analyst Mike Mayo said in a Bloomberg TV interview with Matt Miller:
“It is getting hammered, but you know what? It’s getting treated like any other higher-risk asset like subprime loans, or CDOs, or derivatives, or structured products. And it is a new product. It’s untested through economic cycles. It’s untested through liquidity.”



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WazirX says didn’t receive any ED notice yet, BFSI News, ET BFSI

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India‘s largest cryptocurrency exchange, WazirX co-founder Nischal Shetty said that it is yet to receive any show cause notice from the Enforcement Directorate.

Enforcement Directorate in a release had said it has issued a show cause notice to the crytpocurrency exchange and its directors Nischal Shetty and Sameer Mhartre under Foreign Exchange Management Act (FEMA) transactions involving cryptocurrencies worth Rs 2790.74 crore.

ED had initiated an investigation under FEMA 1999, on the basis of the ongoing money-laundering probe into Chinese-owned illegal online betting applications.

During the course of the investigation ED observed that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore approximately by converting the INR deposits into crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.

Nischal Shetty said, “WazirX is in compliance with all applicable laws. We go beyond our legal obligations by following Know Your Customer (KYC) and Anti Money Laundering (AML) processes and have always provided information to law enforcement authorities whenever required. We are able to trace all users on our platform with official identity information. Should we receive a formal communication or notice from the ED, we’ll fully cooperate in the investigation.”



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ED issues show cause notice to WazirX for transactions involving cryptocurrencies worth Rs 2,790 cr, BFSI News, ET BFSI

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The Enforcement Directorate has issued show cause notice to WazirX Cryptocurrency exchange and its directors Nischal Shetty and Sameer Hanuman Mhatre under Foreign Exchange Management Act for transactions involving cryptocurrencies worth Rs 2790.74 crore.

ED had initiated FEMA investigation into Chinese owned illegal online betting applications and during the course of the investigation ED observed that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore approximately by converting the INR deposits into crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.

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Coal India Hits 52-Week High, Reclaims Rs. 1 Tr. M-Cap: Should You Remain Invested?

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Investment

oi-Roshni Agarwal

|

Shares of Coal India in intra-day trade on Friday (June 11, 2021) hit a fresh 52-week high of Rs. 165 per share on the NSE, gaining over 5 percent. The gains in the stock price of the state owned entity come on the back of hopes of improved earnings in the near term. The scrip last hit its 52-week high price of Rs. 162.95 on February 26 this year.

This Stock Regains Rs. 1 Trillion M-Cap Today; 27% Upside Seen In The Near Term

Coal India Hits 52-Week High, Reclaims Rs. 1 Tr. M-Cap: Should You Remain Invested?

Owing to the sharp run up in stock price for the last two weeks, the stock of Coal India in today’s trade reclaimed a market cap of Rs. 1 trillion. At the time of writing this copy, the stock trade at Rs. 161 per share on the NSE and commanded a market cap of Rs. 99,158 crore.

Performance of Coal India shares over a time period

Time period % gains or losses Sensex return
YTD 18.89 9.87
1-year performance 16.95 56.43
3-year performance -44 47.85

Motilal Oswal’s take on the Coal India scrip

In a stock update, analysts at the brokerage firm said, “With a recovery in demand, e-auction premiums and realisations have shown signs of an improvement. We expect this to eventually seep in (given some lag between allocation and dispatches) and improve as inventory levels at Coal’s mines reduce. The global thermal coal prices have been on an uptrend, which is encouraging for e-auction realizations”.

With improving offtake and realisations, we see sharp operating leverage coming into play. Notwithstanding any further negative shocks, we expect Coal India’s profitability to recover sharply in FY22 (+29 per cent YoY). Recovery in demand and funds from the Atmanirbhar scheme should help alleviate concerns on stretched receivables, the brokerage firm added.

Should You Continue To Hold Coal India Shares?

Technically also, the scrip of Coal India has shown trend reversal on chart for the very first time since 2016 (i.e. after a gap of 5 years). Experts are of the view that the stock can very easily hit Rs. 200- 210 in 1.5 to 2 months time, implying an upside of 27%.

Other reasons that advocate holding the scrip of Coal India:

• Highly efficient management with a ROE of 38.9%

• Low debt to equity ratio of -0.41 times

• The stock is in a bullish zone technically. Trend has improved from mildly bullish on June 7. A host of factors for the scrip are bullish, including MACD, KST and Bollinger Band.

• The company has delivered negative results for the last six consecutive quarters

• Institutional holdings remain high in the scrip at 28.4%

Disclaimer: The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor.

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What Are The Investment Options Under NPS?

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Pension Fund Managers Under NPS

The subscriber must first select one PFM from the below list:

  • Birla Sun Life Pension Management Limited
  • HDFC Pension Management Company Limited
  • ICICI Prudential Pension Funds Management Company Limited
  • Kotak Mahindra Pension Fund Limited
  • LIC Pension Fund Limited
  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited

NPS Investment Options

The National Pension System (NPS) gives investors two options i.e. Auto Choice and Active Choice for investing in four asset classes: equities, government securities, corporate debt, and alternative investment funds (AIFs).

Active Choice Option In NPS

Based on your risk behaviour and personal preferences, you can allocate the funds according to your choice. The PFM, Asset Class, and per cent of allocation in each scheme of the PFM can be specified by the subscriber according to his or her choice. Under this option, there are four asset classes: equity, corporate debt, government bonds, and alternative investment funds, from which the allocation must be stated under a single PFM.

  • Asset class E – Equity and related instruments
  • Asset class C – Corporate debt and related instruments
  • Asset class G – Government Bonds and related instruments
  • Asset Class A – Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc.

NPS subscribers can choose multiple Asset Class under a single PFM using the active choice option, as shown below:

  • Up to the age of 50, you can invest up to 75 per cent of your overall asset allocation in equity.
  • For Alternative Investment Funds, the percentage contribution value should not exceed 5%.
  • The overall allocation throughout E, C, G, and A asset classes should be 100%.

Equity Allocation Matrix for Active Choice

Equity Allocation Matrix for Active Choice

The maximum allowed equity investment will be determined by the equity allocation matrix described below. The equity allocation will go down according to the subscriber’s age.

Age (years) Max. Equity Allocation
Up to 50 75%
51 72.50%
52 70%
53 67.50%
54 65%
55 62.50%
56 60%
57 57.50%
58 55%
59 52.50%
60 & above 50%
Source: npscra.nsdl.co.in

Auto Choice Option Under NPS

Auto Choice Option Under NPS

NPS provides another option for members who have less exposure to equity investments. In case of less asset allocation knowledge, a subscriber can select the Auto Choice option. Under this option, investments will be made in a life-cycle fund. A predefined portfolio will decide the portion of contribution invested throughout three asset classes in this option. At the earliest age of registration (18 years), the auto choice will include investing 50% of pension money in E Class, 30% in C Class, and 20% in G Class. Under this choice, the CRA system will select the scheme as well as the allocation ratio depending on the age of the Subscriber at the time of registration. Individuals’ presence in equity and corporate debt appears to decline as they become older. There are three alternative alternatives accessible inside ‘Auto Choice’ based on the risk tolerance of the Subscriber – Aggressive, Moderate, and Conservative. The following funds are described in-depth:

LC75 - Aggressive Life Cycle Fund

LC75 – Aggressive Life Cycle Fund

This Life cycle fund allows for an equity investment cap of 75% of total assets. The equity investment exposure begins at 75% till the age of 35 and subsequently decreases according to the subscriber’s age.

Age Asset Class E Asset Class C Asset Class G
Up to 35 years 75 10 15
36 years 71 11 18
37 years 67 12 21
38 years 63 13 24
39 years 59 14 27
40 years 55 15 30
41 years 51 16 33
42 years 47 17 36
43 years 43 18 39
44 years 39 19 42
45 years 35 20 45
46 years 32 20 48
47 years 29 20 51
48 years 26 20 54
49 years 23 20 57
50 years 20 20 60
51 years 19 18 63
52 years 18 16 66
53 years 17 14 69
54 years 16 12 72
55 years & above 15 10 75

LC50 - Moderate Life Cycle Fund

LC50 – Moderate Life Cycle Fund

This Life cycle fund allows for an equity investment cap of 50% of total assets. The equity investment exposure begins at 50% till the subscriber is 35 years old and subsequently decreases as the subscriber’s age increases.

Age Asset Class E Asset Class C Asset Class G
Up to 35 years 50 30 20
36 years 48 29 23
37 years 46 28 26
38 years 44 27 29
39 years 42 26 32
40 years 40 25 35
41 years 38 24 38
42 years 36 23 41
43 years 34 22 44
44 years 32 21 47
45 years 30 20 50
46 years 28 19 53
47 years 26 18 56
48 years 24 17 59
49 years 22 16 62
50 years 20 15 65
51 years 18 14 68
52 years 16 13 71
53 years 14 12 74
54 years 12 11 77
55 years & above 10 10 80

LC25 - Conservative Life Cycle Fund

LC25 – Conservative Life Cycle Fund

This Life cycle fund allows for an equity investment maximum of 25% of total assets. The equity investment exposure begins at 25% till the age of 35 and subsequently decreases as the subscriber’s age increases.

Age Asset Class E Asset Class C Asset Class G
Up to 35 years 25 45 30
36 years 24 43 33
37 years 23 41 36
38 years 22 39 39
39 years 21 37 42
40 years 20 35 45
41 years 19 33 48
42 years 18 31 51
43 years 17 29 54
44 years 16 27 57
45 years 15 25 60
46 years 14 23 63
47 years 13 21 66
48 years 12 19 69
49 years 11 17 72
50 years 10 15 75
51 years 9 13 78
52 years 8 11 81
53 years 7 9 84
54 years 6 7 87
55 years & above 5 5 90

How to change Auto/Active Choice in NPS?

How to change Auto/Active Choice in NPS?

To change your Auto or Active Choice option under NPS, you can follow the steps listed below:

  • Visit www.cra-nsdl.com and sign in to your account using your User ID and IPIN.
  • Now click on ‘Transact Online’ and select ‘Change Scheme Preference’
  • Now select your ‘Tier Type’ for which you want to make changes.
  • Now choose the ‘Scheme-preference type’ and submit.
  • Now select ‘Scheme Preference Change’ and select your scheme preference type as Active or Auto.
  • Now click on ‘Submit’ and a confirmation screen will appear.
  • Now click on ‘Send OTP’ and you will get an OTP on your registered mobile number.
  • Enter the received OTP and click on Submit OTP.
  • Once the OTP is verified, an Acknowledgement number will be displayed on your screen.



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