Choosing NPS fund manager? Seek consistency across the asset classes

Switch fund manager only if long-term performance lags the category average

October 1, which is celebrated as National Pension System (NPS) Diwas, is an occasion when investors (especially the younger ones) who have not yet invested in the retirement product, should consider taking the plunge. Existing investors should, on this day, check their asset allocation and assess their pension fund manager’s (PFM) performance.     

Higher equity exposure

NPS offers the comfort of being a government-backed scheme.

Says Kurian Jose, chief executive officer, Tata Pension Management: “While other retirement-oriented instruments like Employees’ Provident Fund (EPF) and Public Provident Fund (PPF) invest primarily in fixed-income instruments, and hence offer fixed-income like returns,