Will MARS Mean The Moon To Retirees?
Outlook Money|July 2023
The pension regulator’s MARS, which envisages delivering minimum assured returns, could give a new fi llip to NPS by drawing more conservative investors into the scheme
NILANJAN DEY
Will MARS Mean The Moon To Retirees?

The minimum assured return scheme (MARS), the pension regulator's version of a scheme aimed at delivering minimum assured returns, is expected to be based on floating rates pegged to 10-year government security. The scheme, spurred by the need to provide an alternative to entirely market-driven performance in the organised retirement sector, will take pension reforms to the next level.

Assured returns will attract a new set of subscribers to the National Pension System (NPS), which stand at the very centre of reforms initiated by the Pension Fund Regulatory and Development Authority (PFRDA) in recent days. The MARS variant, likely to draw serious long-term allocations to the system, will encourage a relatively more conservative section to save for retirement.

In this context, an insight into the concept of floating rates is expected to help subscribers. To be reset periodically, such rates will be a critical driver for all. A number of elements may work in their favour, or against, depending on the circumstances. Retirement planning, to say the least, needs to take cognisance of such factors.

Simply put, the 10-year government securities (G-secs) serve as a crucial barometer for the fixed-income segment to which investors usually refer to in the debt market. It serves as a benchmark for major borrowing rates, with variations in its yield giving serious repercussions for investments.

この記事は Outlook Money の July 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Outlook Money の July 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

OUTLOOK MONEYのその他の記事すべて表示
Gold ETFs And FoFs
Outlook Money

Gold ETFs And FoFs

While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.

time-read
2 分  |
November 2024
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Outlook Money

PLANNING TO BUY CHILD INSURANCE? THINK TWICE

Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs

time-read
7 分  |
November 2024
How Do You Define Happiness?
Outlook Money

How Do You Define Happiness?

Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness

time-read
5 分  |
November 2024
Avoid Crypto As It Is Highly Volatile
Outlook Money

Avoid Crypto As It Is Highly Volatile

I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?

time-read
2 分  |
November 2024
Invest Right, Don't Speculate
Outlook Money

Invest Right, Don't Speculate

The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital

time-read
4 分  |
November 2024
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Outlook Money

The Wedding & Budget: Is Minimalist Trend The Right Knot For You?

Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it

time-read
9 分  |
November 2024
Here's How To Buy An ETF?
Outlook Money

Here's How To Buy An ETF?

Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.

time-read
1 min  |
November 2024
How Passive Funds Help Diversify
Outlook Money

How Passive Funds Help Diversify

Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio

time-read
2 分  |
November 2024
The Rise Of Passive Funds
Outlook Money

The Rise Of Passive Funds

The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?

time-read
10 分  |
November 2024
Tax Reforms: What's In Store?
Outlook Money

Tax Reforms: What's In Store?

The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms

time-read
10+ 分  |
October 2024