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NPS Becomes Expensive As Trusts Allowed To Recover Admin Expenses

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NPS was started as a retirement savings scheme primarily for government employees who came into service on or after January 1, 2004 and till now its most attractive feature has been its low cost.

But from the month of August, investment in NPS will become dearer as NPS Trust which oversees the assets and funds under the system has now been allowed to recover administrative charges on a daily accrual basis.

NPS Becomes Expensive As Trusts Allowed To Recover Admin Expenses
 

NPS Trust General Manager Akhilesh Kumar, in a notice to all the NPS subscribers, says, "It is brought to the notice of all subscribers under National Pension System that, as approved by the Pension Fund Regulatory and Development Authority, NPS Trust will restart recovering administrative charges / expenses @ 0.005% per annum of the Asset under Management (AUM) on daily accrual basis to meet its expenditure. The same will be effective from 01/08.2019."

But notably even after a hike of 0.005%, NPS will continue to be lucrative in comparison of other market linked investment options including ULIPS and ELSS.

GoodReturns.in

Read more about: nps retirement expenses pfrda
Story first published: Wednesday, July 31, 2019, 14:20 [IST]
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