September 28, 2010 3:23 pm
I am Saudarya Singh. I want to ask a question that……
What is/will be the probable interest rates/performance (as in case of PPF) offered by various financila entities authorised by Govt for NPS
Last year SBI fund manager gave ~15-16% return. That’s great. So its pretty good investment for long term with variable interest of >10% (10-15%).
NPS is purely a market dependent instrument. In NPS, you can invest up to 50 % of your money in to the equity index fund ( E class ) . Rest will be in debt instrument such as Corporate bonds ( C class ) and Government bonds ( G class ). So there is no guarantee of the returns. However, considering the equity component of your investment and if you have long term horizon I expect returns to be more than 10 % ( as Gaurav said ).
For sure it will be 10% and upwards but it completely depends on the asset allocation of your funds but I would see it at a base 10%. By allocation I mean what % of your funds you allocate in Sector C, G or E of the NPS. Though Sector E has a cap of 50%.
The returns are not guaranteed(similar to mutual fund) and are as per your fund selection and performance of the Fund Manager.
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