What is NPS' active asset allocation choice?
Mar 30, 08:03

National Pension System's (NPS) private sector subscribers have the freedom to decide how their contributions will be invested. You can pick your pension fund manager and the asset-allocation strategy, subject to overall NPS investment regulations. That is, you can choose between auto and active choices. Under auto choice, the strategies are pre-set. Under active choice, however, you have the flexibility to allocate your money across four asset classes – equity, corporate debt, government securities and alternative investments. Those under 50 can allocate up to 75 percent towards equities and up to 100 percent in corporate debt and g-sec funds. The contribution cap on alternate assets is 5 percent.