Fund management that you buy

NPS is within reach of becoming a compelling choice for every Indian investor

The New Pension System (NPS) was imagined in the late 1990s. Many elements of that thinking were forward-looking. A key element of this was the ideas about fund management.

On multi-decade horizons, there is a lot to gain, on average, by diversified equity exposure. This inevitably introduces greater risk for the worker. Equity returns are higher only because of equity risk: The higher return is the compensation for the risks taken. Young people should load up on diversified equity exposure, while recognising that there are irreducible risks about the future that are commensurately being taken. Over multi-decade horizons, with the power