The biggest change ever happened in NPS, now you will decide yourself how your money will be invested in the stock market.

News India Live, Digital Desk: A very big and good news has come for crores of working people and common investors who have invested money in the National Pension System (NPS). Pension Fund Regulatory and Development Authority (PFRDA) has made a major change in the rules of NPS, which will now give investors more control over their money.

Till now, when you invested money in NPS, your entire money was managed together. But now, PFRDA ‘Direct Benefit Transfer (DBT) based segregation’ A new facility named has been introduced. Let us understand in simple language what it is and how it will benefit you.

What is this new ‘segregation’ rule?

Till now, whenever you deposited your money in NPS (whether through SIP or lump sum), your money went to one place and from there it was divided into equity (stock market), corporate bonds, government securities etc. according to the plan you chose (Auto or Active Choice).

But this will not happen now. Under this new rule, your money will be divided into two parts:

1. Equity i.e. share in stock market: This part will fall apart.
2. Share in debt and other options: This will be the second part.

How will you benefit from this?

The biggest advantage of this change is that now you will be able to decide whether your On which day does the share market money (equity portion) enter the market?

• You will get more profit in market decline: Suppose, there is a big fall in the stock market today. Now, under this new rule, you can decide to invest only your equity money in the market today, so that you can get more units at the fallen prices. This can increase your returns significantly in the long run.

More Control, Better Returns: You will now have better control over your investments. You will be able to decide when and how much to invest in shares based on market fluctuations. This feature is extremely beneficial for savvy investors with some market understanding.

Useful for those with auto-choice mode: Even if you have chosen auto-choice mode, you can still avail this feature and invest in shares based on your market share.

When will this come into effect?

PFRDA has issued a circular in this regard and this new rule is expected to come into effect soon. This new rule will be applicable to all levels of NPS (Tier-I and Tier-II), whether government or private sector.

This change will make NPS even more attractive and investor-friendly, especially for young investors who want to earn better returns from the stock market.