New Pension Scheme is a government scheme to provide a pension for you. So why should you not invest in it?
I do not like the terms and conditions…and the fact that it is EET. I would prefer a PPF or ELSS which is EEE.
Forget that…Pattabhiraman Murari has more reasons than what I have about investing in NPS. Stay away, at least for the younger people that is the message.
What I do not like about NPS is something else. Look at the money that it controls. Assume that it is about Rs. 300,000 crores. Now this amount will increase @ 20% every year. About 10% by way of growth and 10% by way of new contribution. This is not small.
Now if this was in your control you will ensure that this is in safe hands…..However in the hands of the government this can be a bomb.
Some politician will look at Rs. 500,000 crore lying there and get nice, crazy, stupid, kameena ideas. Let me enumerate them:
1. The NPS fund has to invest 10% of its equity in Psu bond funds. This could be extended to psu equities…
2. The nps money has to be invested only in India….however we are allowing investment in US indices.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.