Below mentioned three fund options (also known as asset classes) are available under NPS:
Under Equity Fund option, subscriber is allowed to invest only up to 50% of contribution amount.
Yes, subscriber can invest 100% of contribution to Government Securities or Corporate Bond Fund.
Yes. Subscriber can have different asset allocation patterns for both the accounts.
NPS offers two Investment Choices to subscribers – Active Choice and Auto Choice.
|Age||E (%)||C (%)||G (%)||Age||E (%)||C (%)||G (%)|
|< = 35||50||30||20||46||28||19||53|
|44||32||21||47||> = 55||10||10||80|
As the subscriber grows old, the investment is shifted more towards secured fund option – Government Securities.
In case of excessive market performance where corpus in Equity Fund breaches the 50% threshold, system driven Auto – Rebalancing of Portfolio technique is carried out on next date of birth of the subscriber.
With this technique, units worth excessive corpus is redeemed from the Equity fund corpus of the subscriber and allocated to other Funds (Government Securities and Corporate Bonds) in the same pattern as last selected by the subscriber.
Three fund options available under NPS are:
A subscriber is also able to invest 100% of contribution to Government Securities or Corporate Bond Fund.
Additionally, NPS offers two Investment options to subscribers – Active Choice and Auto Choice.