personal-finance
NPS's popularity rides on the lure of equity
Apr 23, 10:04
The National Pension Scheme is getting popular by the day. The assets of the NPS Tier-I account has grown significantly over the last few years. Among the four fund options, AUM of equity fund (Scheme-E) registered more than fourfold increase over the last three years. On the back of rising equity markets, Scheme-E gave 9.8 percent returns. Actively-managed large-cap mutual funds gave around 9 percent in this period.
Aside from professional management as against what the Employees' Provident Fund offers, an enhanced limit under the active choice to invest in Scheme-E to a maximum of 75 percent from the earlier limit of 50 percent has too attracted more younger population towards the Scheme-E.