Key elements of long-term wealth creation are, strategic asset allocation, minimal risk, having potential for maximum gains, low-cost structure, high tax efficient on investments, acculturation at pensions purchase stage, low operational and fund management charge structure.
DNA of NPS has all these features imbibed by the default design of the product. I have been very happy to invest in NPS and I evangelize the long-term benefits I have opened my daughter's account at the age of 23 (she is the recipient of the Govt of India fellowship for a Ph.D.) as evidence and my conviction in the great retirement solution called NPS. Great product for wealth creation in long-term using both tier 1 and tier 2 account (I call this tier 2 account a savings account capable of beating inflation in terms of returns) and highly flexible in terms of operations. Recent change of higher equity allocation, especially if Gen X & Gen Y open accounts, they will be the biggest beneficiary of this feature and this will be a wealth booster in longer investment horizon and will be a multi bagger in returns for young adults of the nation.
--Dilip Raj