PensionIndia

In a bid to ensure higher volumes, New Pension Scheme (NPS) fund managers have told the Pension Fund Regulatory and Development Authority (PFRDA) that they should be allowed to use their respective distribution networks (mutual fund agents) to sell the pension plan.

In a meeting with the Pension Fund Regulatory and Development Authority (PFRDA), the managers had mooted the idea of training their existing sales agents on the NPS product. They had also proposed a commission of at least two-three per cent to the agents for selling the product.

The other day there was this news item about the New Pension Scheme (NPS) that reminded me of a tale from the Panchatantra. The news item was about the recommendations that the parliamentary standing committee on finance had made about the Pension Bill and here's the story that it reminded me of.

India will miss its infrastructure investment target for the five years through March 2012 even as it aims to double such investments over the next five years to accelerate annual economic growth to 9%, top policy makers said Monday.

Asia's third-largest economy, speckled with pot-holed roads and clogged ports, aimed to spend $500 billion during 2007-2012, relying heavily on private funding to build power plants and roads. Economists say India's creaky infrastructure shaves two percentage points off annual gross domestic product.

The Securities and Exchange Board of India (Sebi) is likely to curb the practice of investment advisors, who are also acting as distributors of the products they advise.

An indication to this effect was given by chairman U K Sinha on Friday when he said the regulator was concerned about investment advisors who are acting as distributors of financial products.

After seven years of launch of New Pension Scheme (NPS) now PFRDA has started to work on designing annuity product.

Pension Fund Regulatory and Development Authority (PFRDA) have sought an expression of interest (EOI) from life insurance companies to become an annuity service provider.

Foreigners with a Cap of $10 billion (proposed) can now look forward to invest in Indian Mutual Funds.SEBI has been asked to notify final rules by August 1. In an attempt to manage the volatile capital flows, the finance ministry today allowed foreign individuals to invest up to $10 billion in domestic mutual funds.As you must be knowing, the move was announced in the Budget 2011 by Mr.Pranab Mukherjee.

1st Option : Public provident Fund

If you have not Invested in PPF, you are missing on a great government promoted scheme to create wealth and avail super tax benefits.
Presently, the PPF scheme is based on EEE tax benefits, which mean that when you deposit in the scheme you get tax benefit in terms of section 80C, the interest that gets accrued during period of the scheme on your investments are tax free and finally the amount at the time of withdrawal too is tax free…hence EEE ( Exempt,expempt,exempt ).

Time and again I often tell people that the art of creating wealth is only long term and picking up stocks when everyone is negative about a particular sector or industry.

One such opportunity may be seen now in the Indian banking space.

There are many Insurance companies and mutual fund companies who offer pension plans which are voluntary in nature i.e you may purchase them or you may not viz a viz the EPF and Government Pension Schemes where if you are an employee then it is compulsory for you take subscribe to a pension scheme.

Pension Plans by Mutual funds

There are primarily two pension plans that mutual funds in India offer:

1. Templeton India pension plan.

Most of you if working for private companies must have an account with EPFO.

The government realizing the fact that a large number of private and public sector work force require some sort of retirement benefits launched the EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952, which is a triple benefit scheme. As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to this scheme at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month.