Why is the National Pension System still underused despite being one of India’s lowest-cost and most disciplined long-term investment options? In this conversation, Dhirendra Kumar explains the paradox behind NPS’s limited popularity. While mutual funds are widely promoted through a large distribution network, NPS lacks strong marketing incentives because it offers extremely low commissions. Kumar highlights that NPS provides powerful “behavioral guardrails,” preventing panic selling and encouraging long-term compounding through its structured lock-in. He also notes recent reforms by Pension Fund Regulatory and Development Authority that allow multiple schemes and more flexibility within a single account. For young investors planning retirement, Kumar believes NPS could become a powerful wealth-building tool once awareness catches up with its advantages.