Explained: Debt investments through NPS

National Pension System’s (NPS) scheme C, or corporate debt, takes care of the fixed income exposure for subscribers. You can either choose the active or the auto-choice mode. Under active choice, you can allocate 100 percent of your contribution towards scheme C. If you choose auto-choice, your asset allocation will be linked to your age and risk appetite. Auto mode offers three life-cycle funds based on risk profile - conservative, moderate and aggressive life-cycle funds. You can invest a maximum of up to 45 percent in scheme C under the conservative option, up to 35 years of age. Lowest exposure allowed to corporate bonds is 5 percent under the conservative option, at the age of 55.