Active Choice.
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Active Choice – Individual Fund
Active Choice offers investors a “hands-on” approach to their pension wealth. Investors can allocate their funds as per their own discretion in any of the asset classes’ i.e. E, C or G asset classes with a maximum of 50% in E. You can also distribute your pension wealth across E, C or G (to be indicated in Section C (iii) of the Subscriber Registration Form) as defined by PFRDA.
In case you decide to take the “Active Choice” route, you shall be required to indicate your choice of Pension Fund Manager in Section C (i) of the Subscriber Registration Form.
While exercising the Active Choice, remember that your investment allocation is one of the most important factors affecting the growth of your pension wealth. Act judiciously by keeping the following points in mind:
Consider both risk and return. The E Asset class has higher potential returns that G asset class, but it also carries the risk of investment losses. Investing entirely in the G asset class may not give you high returns but is a safer option.
Diversify your investment. The three individual asset classes offer a broad range of investment options, its good not to put “all your eggs in one basket”.
Reduce risk with longer investment horizon. The longer you remain invested the more risk you can take - early losses can be offset with later gains.
Review your investment choice periodically. Check the distribution of your account balance among the funds to make sure that the mix you chose is still appropriate for your situation. If not, rebalance your account to get the allocation you desire.
Active Choice offers investors a “hands-on” approach to their pension wealth. Investors can allocate their funds as per their own discretion in any of the asset classes’ i.e. E, C or G asset classes with a maximum of 50% in E. You can also distribute your pension wealth across E, C or G (to be indicated in Section C (iii) of the Subscriber Registration Form) as defined by PFRDA.
In case you decide to take the “Active Choice” route, you shall be required to indicate your choice of Pension Fund Manager in Section C (i) of the Subscriber Registration Form.
While exercising the Active Choice, remember that your investment allocation is one of the most important factors affecting the growth of your pension wealth. Act judiciously by keeping the following points in mind:
Consider both risk and return. The E Asset class has higher potential returns that G asset class, but it also carries the risk of investment losses. Investing entirely in the G asset class may not give you high returns but is a safer option.
Diversify your investment. The three individual asset classes offer a broad range of investment options, its good not to put “all your eggs in one basket”.
Reduce risk with longer investment horizon. The longer you remain invested the more risk you can take - early losses can be offset with later gains.
Review your investment choice periodically. Check the distribution of your account balance among the funds to make sure that the mix you chose is still appropriate for your situation. If not, rebalance your account to get the allocation you desire.