InvestorQ : What are the investment choices available in NPS?
Anushri Vasa made post

What are the investment choices available in NPS?

Answer
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Anusha Savla answered.
1 year ago


National Pension System (NPS) earlier known as New Pension Scheme is a government-sponsored pension scheme that was launched in January 2004 for government employees. However, it is now a pension fund scheme opened to all sections on a voluntary basis since 2009. Now anyone one can subscribe and contribute regularly in a pension account during their working life.
The two investment choices offered by NPS are:
  1. Active Choice: In this option, the investor decides how the money should be invested in different assets. Active choice has three funds or investment options, namely Asset Class E -that invests 50% in stocks; Asset Class C that primarily invests in fixed income instruments other than government securities; and Asset Class G- that focus to invests only in government securities. An investor can choose one of these funds or opt for a combination of them.
  2. Auto choice or lifecycle fund: Under this option, the scheme automatically invests the money according to the age of the subscriber.