As a government employee in India (CG), we are not allowed to choose aggressive investment strategy in NPS. Apart from that any change in the scheme requires us to choose only one Fund house which I do not know is reversible or not. Out of 3 default fund houses (SBI, UTI, LIC) only SBI has decent returns. There were ICICI and HDFC also as fund houses in NPS which have higher returns that SBI.

But, I have a concern that choosing only one fund house that too a pvt. fund house for a retirement investment looks like a bad idea. I don't know if I can change it back to default three government institutional fund houses.

How would I evaluate which fund house to choose? Even if I choose a pvt. fund house, am I losing anything in terms of diversification?

1 Answer 1


One can change the fund management company once a year.

The fund houses and investment are selected with utmost care by Govt. The expense ratio are regulated.

So the risk is minimal.

The funds are passively managed and investment is in Index funds. On long term basis there is minimal risk.

Having one fund house instead of 3 does not increase the risk.

  • You mean all the fund houses or the default selected house. Commented Aug 7, 2019 at 16:39
  • Also, what about the loss in number of fund houses. Is it a loss? I'd have to invest only in one fund house after change. Commented Aug 8, 2019 at 5:20

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