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    Question

    What type of returns does NPS offer to its subscribers?

    A Fixed and guaranteed Correct Answer Incorrect Answer
    B Variable and interest-linked Correct Answer Incorrect Answer
    C Market-linked and managed by fund managers Correct Answer Incorrect Answer
    D Only equity-based Correct Answer Incorrect Answer
    E Zero risk fixed income Correct Answer Incorrect Answer

    Solution

    NPS investments are  market-linked  and diversified across asset classes such as equities, corporate bonds, and government securities. The returns depend on fund manager performance and market conditions, making it a potentially high-yield but risk-sensitive scheme.

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