Create an Account

Its Free and always will be!

Sign up or login with your social accounts
Birthday
Day

Hemant Contractor’s Plan for Government Employees

“We are pressing the government to increase the equity proportion of government employees, and expect a favourable response very soon.” 

This is the statement given by Hemant Contractor, from the Finance Ministry, chairman of the Pension Fund Regulatory and Development Authority (PFRDA) in an interview a few days back. In New Delhi, India, the contractor who’s headed the pension regulator since 2014 discussed his expectations and plans which includes the pursuit of new code, along with India’s Insurance and Securities Regulators and boost in Indian equity market from a stewardship code to be rolled out for the country’s fund managers.

Hemant Contractor’s agency has pressed for law enactment allowing workers to move from the plan to the National Pension System (NPS). It is because the government employees contribute about 87 percent of the 2.3 trillion rupees which by the way overseen by the NPS. The NPS started out in the year 2004 and later available to all citizens for voluntary contributions. Besides, the government operates the Employee’s Provident Fund Organization. This organization widely known for offering investors defined returns on savings.

Even the Pension Fund Regulatory and Development Authority (PFRDA) called for a bump to 50 percent, from 15 percent to match with the private-sector pensions.

Contractor believes that with interest rates this lower, “we can manage equities properly and it can provide an extra return, putting money in stocks, can be beneficial.”

However, this strategy carries great risk. But, it doesn’t mean, we would be the first taking a risk of this level. In fact, Australia and Japan already took a greater risk in pension funds. But, no doubt that potential gains come with great risks.

The asset overseen by the NPS are managed by the following: LIC Pension Fund Ltd., UTI Retirement  Solutions Ltd., SBI Pension Funds Pvt., ICICI Prudential Pension Funds Management Co. Ltd., Kotak Mahindra Pension Fund Ltd., HDFC Pension Management Co. Ltd, Reliance Capital Pension Fund Ltd., and Birla Sunlife Pension Management Ltd. etc.

 

Rate this blog entry:
What Can Multi-bagger Stocks Do for Your Investmen...
Mutual Funds Investment India Online - Build Wealt...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Wednesday, 19 June 2019

Captcha Image

Popular Investing Books

Nassim Nicholas Taleb
Randy Cepuch
Prasenjit Paul
George S. Clason
William O Neil
Jeremy J. Siegel

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

Reduce your Brokerage by 100%!!

 289 members logged in


Be a Smart & Well Informed Investor!
Join Today its Free.
Register or Login with just one Click using your Social Account