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NIMIT_MISHRA
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"The unsaid benchmark use for the central government NPS is the EPFO
rate of return. Therefore, PF managers keep a lower allocation to stocks. But this
compromises the long-term return potential of the scheme. They should ideally
increase the exposure to equity," says Manoj Nagpal, head of marketing and
business development at Zyfin Advisors and founder CEO of Outlook Asia
Capital. Despite the conservative allocation, NPS funds have given good returns in
the first nine months of 2014-15. This is due to the bond rally in 2014. The 10-year
benchmark bond yield fell 135 basis points - from 9.1% in April 2014 to around
7.8% by the end of 2014 - pumping adrenaline into the NAVs of funds
overweight on government bonds. The average SIP return of the gilt funds in 2014-
15 is close to 22%, better than the 20% delivered by the equity funds in the period.
In the NPS segment for the private sector, the E class (equity) funds have done
well with average SIP returns of 14.6% since the scheme was thrown open to the
public in May 2009. ET looked at the returns of four types of investors in the past
three fiscals and since launch (see table).
Cold wave conditions continued unabated in Kashmir Valley with minimum
temperatures hovering below freezing point, causing severe problems to the
residents. Even as more than half of the 40-day harshest winter period in Kashmir,
known as 'Chillai-Kalan', has passed, weather in the Valley continues to remain dry
and cold. The Meteorological Department has said there is a possibility of light
rain or snowfall at isolated places in the state over the next 24 hours. The Valley is
currently under the grip of 'Chillai-Kalan' which began on December 21. The
chances of snowfall are maximum and most frequent during this period which
leads to rise in night temperatures, bringing respite from the cold wave conditions,
which otherwise intensify due to dry weather in winters, a MeT official said. The
dry weather has resulted in increased cases of cough, flu.