Much has been written about the NPS (National Pension System) by PFRDA. However, nobody has highlighting the biggest flaw in NPS. NPS is alo a Mutual Fund (Pension fund that’s all) and declares NAV on all business days.
Now, if you invest in any MF before the cut off time (3.00 PM) on any business day, you will be allotted NAV of that day. However, when it comes to NPS, the story is different. You will never get the same day’s NAV. They will allot NAV of T + about 10 days i.e any day between 2-10 days from the day of transaction.
Markets keep going up and down and an investor should not be denied getting the benefits of lows in the market.
Let’s say that today SENSEX and NIFTY crashed by 1000 points and I want today’s NAV, I just cannot get it from NPS. But, any other MF, I can get it.
Can anything be done about this? Will all the hullabaloo about computerization of NPS will end up just like the EPFO mess ?