What are the hidden risks of the NPS debt portfolio? Whether the debt portfolio of NPS is always safe? How to manage the risk if it really exist?
NPS is one of the most popular pension products among Indians. Many of us invest in NPS with the hope of better returns, tax saving purposes, or assuming that it is the lowest expense product. However, have you ever checked the risk involved in NPS investment, especially in the NPS Debt Portfolio?
The majority of us have a wrong belief that a debt portfolio is safe as there is no equity exposure.
I have had this concern for many years and airing the same on social media often. However, as we concentrate only on returns and tax-saving options, such cautions will always take a back seat.
The Hidden Risks of NPS Debt Portfolio – Should you invest?
Before understanding the hidden risks of the NPS Debt portfolio, you must understand few terms of the bond market without which you can’t understand the risks of the NPS Debt Portfolio.