Individuals planning to invest their monies into the New Pension Scheme need to only track the Sensex of Bombay Stock Exchange or the Nifty Index of the National Stock Exchange to see how their investment is performing. This is the basic idea from a recent new report of a discussion with the PFRDA (Pension Fund Regulatory and Development Authority) chairman Mr. D. Swarup.
Mr. Swarup has said that the fund managers who will be handling the investments of the members of the pension fund would be investing only in those infrastructure companies which are listed on either of the stock exchanges. Unlike other fund managers the Pension fund managers of the NPS will not be allowed to involve in Individual stock picking to ensure that there is no room for any rogue play or favoritism especially since this Is a government run scheme using public money.
The PFRDA has over 3000 crores of public money under its management, it is reported. Being essentially a safe keeper of public money, the PFRDA is very particular not to let any risk taking or actions by fund managers which could have a negative effect on the funds.