personal-finance
Why NPS Conservative Fund is ideal for risk-averse
Jun 10, 03:06

Under the government-backed retirement planning scheme National Pension System's auto choice, asset allocation is largely pre-set. However, within this option, subscribers can choose between three lifecycle funds—Conservative, Moderate and Aggressive—with age-linked asset allocation. A Conservative fund is designed with risk-averse and older subscribers' interests in mind. At the age of 55—that is, closer to retirement—allocations to equities and corporate bonds reduce to a trickle, with government securities (90 percent) taking centre stage. The rationale is that corpus at retirement, investors must be insulated against market volatility by moving it almost entirely into highly-secure G-Secs.

NPS Conservative Life Cycle Fund Safe and secure