Pension regulator PFRDA has introduced the Balanced Life Cycle Fund (BLC), another life cycle fund option for private sector (All Citizen model and Corporate NPS) subscribers.
This new life cycle fund —launched on Tuesday on the occasion of Pension Diwas —focuses on growth assets, particularly equity investments, providing more flexibility and potential for higher returns for NPS subscribers.
The big benefit is ease of choice through automatic rebalancing of asset classes. Also More equity exposure is available during the working years, leading to a substantial retirement corpus over the long term.
The tapering of equity allocation under BLC is similar to existing LC 50 where the equity is capped at 50 pe rcent but the equity tapering starts at the age of 45 instead of 35.
Under BLC, Equity allocation up to 50 percent is maintained until the age of 45. The Reduction in equity allocation starts from the age of 45,instead of 35 and at age 55, equity allocation remains at 35…