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Investor’s Query: What is your suggestion about investing in NPS for Retirement Corpus?

http://economictimes.indiatimes.com/personal/finance/savings/centre/analysis/ET-Wealth-Why-NPS-is-the-best-way-to-plan-for-your-retirement/articleshow/18086398.cms

Investment Query: I came across an interesting article. It unfolded a new path of investments to me. Now I understand that this is not a practical idea, but is it possible in the future that people will start investing in forests?

Mr. Gerard Colaco: Throughout the history of investment, various individuals and institutions have come out with, what on paper at least, appear to be attractive alternative investment avenues. The only problem with these avenues is that their long-term track record and many times even their intermediate track records are dismal.

Investor’s Query: Can I have your advice on NPS? Is it worth investing?

Mr. Gerard Colaco: In my opinion, the New Pension Scheme (NPS) is not worth investing in, for the following reasons:

Issue: Dear Mr. Gerard Colaco, congratulations on winning an award in the Karnataka Association of Mutual Fund Advisors (KAMFA) Convention. You fully deserved it and wished you were present to collect it.

Mr. Gerard Colaco: Sorry to disappoint, but I do not believe in awards at all! I was also not informed in advance that I had won any KAMFA award. Had I been, I would have politely declined it and the next Individual Financial Advisor (IFA) would probably have been given the award in our place, with our good wishes.

The new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme” (RGESS), exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh.

The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets.