“The government issues a half baked scheme and expects people to buy it?”
This is exactly what a person who had a choice told me. He was talking about the NPS. Many people have hailed it as a great scheme. I have serious misgivings.
The debt instruments that the NPS buys are not indexed. So literally the fund manager can buy anything – the risk is on the unit holder. Not a great situation to be in. Inertia will ensure that many people will be stuck with bad fund managers. See the mf industry – too many player, too many schemes, NOT enough returns. Bad situation.
Government servants are not allowed to go beyond 15% in equity, OTHER monies have to be in debt. Pension will decided on the basis of ??? (no clue)…..???
There are other issues also – it reminds me of a movie where Mahamood was almost a hero. He runs a movie (talkies) – when he gets a bad movie – he knows his audience (!) will not watch it.
He announces ‘free movie’ – everybody rushes in. He plays smart.
When the movie is over, he says “Exit Rs. 3”.
I hope NPS does not become like that for all of us…
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