Having been in the financial services industry for a long time has its advantages and disadvantages. The advantages are you know many people. In fact too many people.

So when a product is launched or being launched you get a sneak preview. I had got a sneak preview of the NPS’s rates. Looked too good to be true.

Personally I will not invest in the NPS nor will I ‘sell’ – because principally I think Government is not a good business man, does unethical things, …too many complaints. In fact I will sound like Dr. Khan (who sounds like Ayn Rand).

But largely trusting the government with long term money, to me is like committing suicide. Will never do it. Now if the NPS collects say Rs. 100,000 crores…then Rs. 30o,ooo crores, the government will be tempted..and I do not trust the government…read on what my American friend has written..


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  1. Subra,

    I think it is a british friend than an American guy. May be the governments all over the world are same at handling public money.

  2. Dr Mohammed Ali KHan

    ” In fact I will sound like Dr. Khan (who sounds like Ayn Rand).”
    Dear Subra
    Did you mean me?. If so, thanks for the compliment :-).

    “Government is not a good business man, does unethical things..”
    — That is the understatement of the year.. Many times Governments are outright criminal.. Look at Nazi Germany and Communist Russia ( as extreme examples)..

  3. Mr.Subra – Good article.

    But government has been honouring their commitments in EPF, PPF without fail.

    In NPS, at worst, there can be poor management of funds. Even that too is safeguarded by bringing in mutual funds to manage the NPS assets (why someone should manage assets at such a low cost baffles me).

    In the Indian context, what you feel may go wrong with EPF or PPF or NPS.

    Also all the above is being held in individual name, unlike U.K

  4. Muthu,

    the answer to your questions is a book, not a post. ‘Has’ done that does not mean ‘will always’ do that. There are enough things that can go wrong with ALL government schemes. PPF and NPS are completely different animals.

  5. I understand the difference between PPF and NPS. But the common thread is that government is behind both.

    If you ever write a book on this, you can definitely count on me as a buyer.

    Infact I place the order right now with a belief that the price would not exceed Rs.500/- per copy.

  6. How can I trust the Govt. when it is trying to sell the public assets to raise money for whatever (namesake) reason? Can it really honour its commitment?

    The big question is “Does the same government and do the same people be there when the time to honour commitments come?

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