On August 23, the government began the process of pension reforms with the announcement of a new government pension scheme. With this, the country%u2019s pension sector has set off on a radical, hitherto-uncharted course.
Given the higher risk-reward equation associated with stocks, this move has its share of critics and backers. Critics ask, for instance, if there%u2019s empirical evidence to show that long-term equity investing by pension funds will work in India as it has in other countries.
Those in favour argue that the returns from equity investing will be much higher than returns from bonds, and any long-term equity investment is bound to grow.
Government has already given the clearance that pension funds will be allowed to invest in the equity market.
Rs. 4000/- crore is waiting to be invested in the equity markets by March-April 2008.
So go ahead and play in the markets wisely and you are sure to defy all logic as is the Sensex.
On August 23, the government began the process of pension reforms with the announcement of a new government pension scheme. With this, the country%u2019s pension sector has set off on a radical, hitherto-uncharted course.
Given the higher risk-reward equation associated with stocks, this move has its share of critics and backers. Critics ask, for instance, if there%u2019s empirical evidence to show that long-term equity investing by pension funds will work in India as it has in other countries.
Those in favour argue that the returns from equity investing will be much higher than returns from bonds, and any long-term equity investment is bound to grow.
Government has already given the clearance that pension funds will be allowed to invest in the equity market.
Rs. 4000/- crore is waiting to be invested in the equity markets by March-April 2008.
So go ahead and play in the markets wisely and you are sure to defy all logic as is the Sensex.
