Investment Options under NPS

As an NPS subscriber, you have the flexibility to tailor your investment strategy based on your risk appetite and retirement goals. At the time of registration, you are required to choose your preferred investment option.

NPS offers:

  • Two distinct Investment Options: Active Choice and Auto Choice
  • Four Asset Classes for allocation:
    • Equity (E)
    • Corporate Bonds (C)
    • Government Securities (G)
    • Alternative Investment Funds (A)
      1. Active Choice – Personalized Allocation

        Under Active Choice, you can actively decide how your contributions are distributed across asset classes, based on your personal preferences and financial goals.

        You must choose:

        • Desired allocation across the four asset classes:
          • E – Equity (max up to 75%)
          • C – Corporate Debt (max up to 100%)
          • G – Government Securities (max up to 100%)
          • A – Alternative Investment Funds (max 5%)

          • Key Guidelines:

        • Equity allocation is capped at 75%.
        • Total allocation across E, C, G, and A must equal 100%.
        • This option is suitable for individuals who want greater control over their investments.
      2. Auto Choice – Age-Based Allocation (Lifecycle Funds)

        For subscribers who prefer a more hands-off approach, Auto Choice offers an age-based investment strategy. Here, your funds are automatically allocated across asset classes based on your age, with equity exposure reducing gradually as you grow older.

        Auto Choice offers four predefined Lifecycle Fund options:

        1. LC75 – Aggressive Lifecycle Fund
          • Starts with 75% in Equity up to age 35 and tapers off thereafter.
          • Ideal for those with a higher risk appetite and longer investment horizon.
          Age Asset Class E (%) Asset Class C(%) Asset Class G(%)
          Up to 35 years 75 10 15
          36 years 71 11 18
          37 years 67 12 21
          38 years 63 13 24
          39 years 59 14 27
          40 years 55 15 30
          41 years 51 16 33
          42 years 47 17 36
          43 years 43 18 39
          44 years 39 19 42
          45 years 35 20 45
          46 years 32 20 48
          47 years 29 20 51
          48 years 26 20 54
          49 years 23 20 57
          50 years 20 20 60
          51 years 19 18 63
          52 years 18 16 66
          53 years 17 14 69
          54 years 16 12 72
          55 years & above 15 10 75
        2. LC50 – Moderate Lifecycle Fund
          • Begins with 50% in Equity up to age 35 and tapers off thereafter.
          • A balanced approach between risk and stability.
          • This is Default option if no investment choice is specified by the subscriber during account opening.
          Age Asset Class E (%) Asset Class C(%) Asset Class G(%)
          Up to 35 years 50 30 20
          36 years 48 29 23
          37 years 46 28 26
          38 years 44 27 29
          39 years 42 26 32
          40 years 40 25 35
          41 years 38 24 38
          42 years 36 23 41
          43 years 34 22 44
          44 years 32 21 47
          45 years 30 20 50
          46 years 28 19 53
          47 years 26 18 56
          48 years 24 17 59
          49 years 22 16 62
          50 years 20 15 65
          51 years 18 14 68
          52 years 16 13 71
          53 years 14 12 74
          54 years 12 11 77
          55 years & above 10 10 80
        3. LC25 – Conservative Lifecycle Fund
          • Starts with 25% in Equity up to age 35 and tapers off thereafter.
          • Best suited for risk-averse investors seeking capital protection.
          Age Asset Class E (%) Asset Class C(%) Asset Class G(%)
          Up to 35 years 25 45 30
          36 years 24 43 33
          37 years 23 41 36
          38 years 22 39 39
          39 years 21 37 42
          40 years 20 35 45
          41 years 19 33 48
          42 years 18 31 51
          43 years 17 29 54
          44 years 16 27 57
          45 years 15 25 60
          46 years 14 23 63
          47 years 13 21 66
          48 years 12 19 69
          49 years 11 17 72
          50 years 10 15 75
          51 years 9 13 78
          52 years 8 11 81
          53 years 7 9 84
          54 years 6 7 87
          55 years & above 5 5 90
        4. Balanced Lifecycle Fund (BLC)
          • Introduced in October 2024, BLC allows for 50% equity exposure until age 45.
          • Designed for those who want higher equity allocation beyond the moderate approach.
          Age Asset Class E (%) Asset Class C(%) Asset Class G(%)
          Up to 45 years 50 30 20
          46 years 48 28 24
          47 years 46 26 28
          48 years 44 24 32
          49 years 42 22 36
          50 years 40 20 40
          51 years 39 18 43
          52 years 38 16 46
          53 years 37 14 49
          54 years 36 12 52
          55 years & above 35 10 55

      Whether you choose Active or Auto Choice, NPS ensures that your investments are professionally managed, diversified, and aligned with long-term retirement planning. You change your investment option 4 times in a year.