Pension Fund Regulatory and Development Authority has slashed investment management fees to 0.01% of asset under management (AUM) from 0.25% to ensure higher returns for private sector subscribers of the National Pension System (NPS), a move aimed at making the scheme competitive with other asset classes such as EPF, PPF and bank fixed deposits.While the move may crimp profit margins of pension fund managers, PFRDA chairman RV Verma told FE this will raise the return on NPS by about 24 bps for investors. "NPS will become more economical for subscribers by reducing costs and raising the returns," he said.

Source - http://www.financialexpress.com