The Pension Fund Investments Role in Financing and Enabling Global Development in Indian Market

Abstract

The Pension fund show a dynamic role as financial mediators in Indian financial market where pension fund that is divided into bonds, Stocks and Commercial real estate, including traditional intermediation fund theories. In terms of direct holdings for pension investments, the pension fund also assists in carrying out the functions and financial system. The Indian Government commenced the National Pension System under the Act of Pension Fund Regulatory and Development Authority (PFRDA) so that country’s peoples can be covered under social security arrangement that is reasonably priced. The research enlightened the annuity investments imprint over overall Indian financial market growth. The Purposive sampling is the basis of the study, which also examines pension plans using secondary sources of information. The granger causality test applied to analyze the significant impact over market with pension investment. The study also found that under the pension program, a retiree in India may invest his contribution up to a certain amount. In conclusion, the researcher concludes that the capital market has an significant impact of investment as pension investment and capital market development defiantly boost up and improve country’s economic development at a large scale and also useful in enhancing the return on pension investment. This phenomenon support the investment amount specifically pension fund can be used as evidence to growth the capital market in the country.