In structure NPS is similar to a mutual fund scheme; both pool assets from a number of investors and assign or allot units as investment value in a fund.
Learn about Wealth Creation
At the moment liquid funds are delivering an annualised return of 5.5%-6%. This is lower than the 6.5%-7% seen a year ago. However, it is in line with the downward trending interest rates in the economy. If you are feeling disappointed with these returns and think that its better to move to a higher return fund or leave money in the bank itself, first read through the points below and then decide what to do.