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Advantages And Disadvantages Of Npos

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Based on the study of NPS, certain suggestions have been drawn feeling the urgent necessity and implementation after been consulted by experts. The suggestions are – • NPS doesn’t offer fund investment in overseas market. Indian market is very volatile and people hesitate to invest in such a volatile market. They prefer to invest in a safe market where there are assured return with minimum chances of losing their funds. NPS funds should be invested in overseas markets. • NPS offers investment cap of 50% in equity market. The investment cap should be removed and people should be allowed the free to choose the amount of investment they would like to make in equity. As seen in case of equity funds, the returns are remarkably high and people …show more content…

Although there are many advantages because of this, yet there are demerits too. The organizations attached to NPS, feel very less responsible because of this and they don’t try to motivate people to invest as they have very less profits. • The minimum investment amount of NPS is Rs. 500 per month or Rs. 6000 annually, which is very high for people who belong from financially unhealthy backgrounds. There are social security schemes like the Atal Pension Yojana for them but it ensures pension of only Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 or Rs. 5000. The pension is very less and with such high inflation, the pension amount seems very low. So if the minimum investment amount is lowered then people who belong from financially unhealthy backgrounds shall also get a chance to invest in a platform which shall ensure better returns on the same investment. • NPS should be advertised with instrumental conditioning at the background. The people should be equally said about the dire consequences of not having a well planned retirement and they should also be shown as rewarded if they have one. This shall perhaps be the best way to promote

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