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NPS debt investments have beaten mutual funds: How investors should realign portfolios

NPS debt investments have beaten mutual funds: How investors should realign portfolios
NPS debt investments have beaten mutual funds: How investors should realign portfolios
Given that bonds are nearing the end of a long interest rate downcycle, this segment may fetch modest returns in coming years.

Synopsis

The presence of government bonds and corporate bonds has added much value for NPS subscribers. These two segments have outperformed corresponding mutual fund categories across time frames. Here's what experts suggest regarding realigning NPS portfolio.

Debt fund investors have enjoyed huge gains over the past two years. With interest rates moving south, bond prices have skyrocketed. This has helped bond funds outperform equity funds over the past one, three and five years. For NPS investors, the debt portion has yielded a bigger bonanza. But what lies ahead for the retirement savings vehicle?Under NPS, investors have a choice of three asset classes—equities, corporate bonds and government
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