#Investors #prefer #Shariah-compliant pension #products

The private pension fund industry grew by over 32% during 2016-2017, and the total assets of the industry crossed Rs25 billion. This growth of the industry has primarily resulted from an increase in participation by general investors and better performance of the stock market.
Thereby investors preferred Shariah-compliant pension products over conventional products. Out of Rs25 billion assets of pension funds, over Rs16 rupees comprise of Shariah-compliant securities.
In 2007 private pension funds were introduced. Currently there are 19 pension funds operating in the market, out of which 10 are Shariah compliant and 9 are conventional. These funds are managed by 10 fund managers. The pension funds provide participants investment options in terms of securities and commodities.
Participants can choose retirement age between 60 to 70 years. On retirement, they can withdraw up to 50% of the accumulated balance in lump sum and the remaining 50% in installments, as pension.