Long lock-in, but safe investment: What NPS can do for your financial goals

NPS is an excellent product for retirement planning, provided you stay put till maturity

Tier-one equity schemes of the National Pension System (NPS) have given a category average return of 34 per cent over the past year. Government bond funds (G) have given 10.6 per cent while corporate bond funds (C) have given 8.6 per cent return over this period.

Takeaways

One thing that is clear from these returns is that equity portfolios are being managed actively. “The significant deviation from the return of the Nifty 50 index indicates that Pension Fund Managers (PFMs) are taking substantial exposure to stocks outside the Nifty 50,” says Deepesh Raghaw, a Securities and Exchange Board of India