welcomewiki has just posted in the HR Forum forum of Wiki Newforum under the title of All about the New Pension Scheme.
This thread is located at http://www.wikinewforum.com/showthread.php?t=5839
Here is the message that has just been posted:
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*Are my investments guaranteed? *
No. There is no guarantee since NPS is a defined contribution scheme and the benefits depend on the amount contributed and the investment growth up to the time of exit.
*How should I select my investment option? *
You can choose the investment mix between equity or E (high risk but high returns), mainly fixed income instruments or C (that come with medium risk and returns) and pure fixed investment products or G (which offer low returns but have very low risks associated with them). Equity investment is capped at 50 per cent.
At present, the equity investment consists of index funds that replicate the Sensex or Nifty portfolio. The C segment includes liquid funds, corporate debt instruments, fixed deposits and public sector, municipal and infrastructure bonds. The pure fixed investment instruments include state and central government securities.
There is a trade-off between risk and returns, with a younger investor placed better to take risks.
If you are unable to decide the investment mix, the default option will kick in.
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