PFRDA revises Investment Management Fees to be charged by pension funds in NPS – Check details


The Investment Management Fees to be charged by the pension fund will be on the aggregate AUM of the pension fund under all schemes and is levied on a daily basis.

Investment Management Fees charged by pension funds in the National Pension System (NPS) have been increased by the Pension Fund Regulatory and Development Authority (PFRDA) effective April 1, 2021. The fund management fees which were 0.01 per cent of the asset will now stand increased but will be capped at 0.09 per cent depending on the total asset under management of the pension fund. The revised revenue structure for the pension funds will be a staggered based model, under which different slabs of the management fee will be applicable on different slabs of AUMs (assets under management).

Affiliate Marketing

According to these slabs, for AUMs up to Rs 10,000 crore, the maximum investment management fee will be 0.09 per cent. From Rs 10,001 to Rs 50,000 crore, the fee has been capped at 0.06 per cent; from Rs 50,001 to Rs 1,50,000 crore at 0.05 per cent, and for AUMs crossing Rs 1,50,000 crore, the management fee will be 0.04 per cent.

As per the notice to subscribers, the new slab-wise structure will be applicable to the pension funds to whom fresh certificates of registration have been issued by PFRDA on March 30, 2021.

SBI Pension Funds

Up to Rs 10,000 crore: 0.09% per annum
Rs 10,001-Rs 50,000 crore: 0.06% per annum
Rs 50,001-1,50,000 crore: 0.05% per annum
Rs 1,50,000 crore and above: 0.03% per annum

LIC Pension Funds

Up to Rs 10,000 crore: 0.09% per annum
Rs 10,001-Rs 50,000 crore: 0.06% per annum
Rs 50,001-1,50,000 crore: 0.05% per annum
Rs 1,50,000 crore and above: 0.03% per annum

UTI Retirement Solutions

Up to Rs 10,000 crore: 0.07% per annum
Rs 10,001-Rs 50,000 crore: 0.06% per annum
Rs 50,001-1,50,000 crore: 0.05% per annum
Rs 1,50,000 crore and above: 0.03% per annum

HDFC Pension Management

Up to Rs 10,000 crore: 0.09% per annum
Rs 10,001-Rs 50,000 crore: 0.06% per annum
Rs 50,001-1,50,000 crore: 0.05% per annum
Rs 1,50,000 crore and above: 0.03% per annum

ICICI Prudential Pension Funds

Up to Rs 10,000 crore: 0.09% per annum
Rs 10,001-Rs 50,000 crore: 0.06% per annum
Rs 50,001-1,50,000 crore: 0.05% per annum
Rs 1,50,000 crore and above: 0.03% per annum

The Investment Management Fees to be charged by the pension fund will be on the aggregate AUM of the pension fund under all schemes and is levied on a daily basis.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.





Source link