In India now social security is only guaranteed for govt. employees in old age because only they are getting pension. Social security should be guaranteed for all. For this purpose central govt. brought New Pension Scheme ( National Pension Scheme) According to which any Indian can open a Permanent Retirement Account Number. (PRAN) By which he can invest for his retirement life. In order to monitor this entire scheme and its operation to protect the interests of investor, a body is constituted named PFRDA (Pension Fund Regulatory and Development Authority) under which another agency for record keeping is created named CRA (Central Recordkeeping Agency) which makes the pension fund operations transparent. Three options are available to any investor . They are Option G: money will be invested in central and state govt. securities . Which is guaranteed by government. So very safe. Option C: it is to invest in Corporate Bonds. Which is also safe to certain extent. Option E: to invest in Stock Market index funds . Which is highly risky. But investor has the freedom to select the option
In India now social security is only guaranteed for govt. employees in old age because only they are getting pension. Social security should be guaranteed for all. For this purpose central govt. brought New Pension Scheme ( National Pension Scheme) According to which any Indian can open a Permanent Retirement Account Number. (PRAN) By which he can invest for his retirement life.
ReplyDeleteIn order to monitor this entire scheme and its operation to protect the interests of investor, a body is constituted named PFRDA (Pension Fund Regulatory and Development Authority) under which another agency for record keeping is created named CRA (Central Recordkeeping Agency) which makes the pension fund operations transparent.
Three options are available to any investor . They are Option G: money will be invested in central and state govt. securities . Which is guaranteed by government. So very safe. Option C: it is to invest in Corporate Bonds. Which is also safe to certain extent. Option E: to invest in Stock Market index funds . Which is highly risky. But investor has the freedom to select the option