Investment needs are unique to each and every Individual. No single financial plan would be suitable to everyone. It is necessary, that awareness is created. Such awareness ,created and understood , is the Individual’s responsibility, who undertake decisions and apply the same to their situations. This website or any Individual or entity related with this website , would not take or assume any liability towards the decisions undertaken by such individuals. Individuals are encouraged to make inquiries, validate such information, from available resources on both online and offline content , before undertaking any financial decisions.       This website does not charge any fees for such services rendered. Information sought and sharing of such information is permissions based . The website focuses only on the NPS All Citizen model and the Corporate model only as more awareness needs to be created on this models. Government model and the erstwhile NPS swavalamban model (Now Atal Pension Yojana ) are already being undertaken by the Government agencies through their own network and marketing channels.

How is the NPS contribution invested into the available asset class and choice on allocation?

The subscriber’s money , is invested into different classes of assets as put below .

Active: When a subscriber chooses to allocate his investment as per his informed choice , It is understood that the subscriber is exercising the ACTIVE choice

Asset class -> Equity Corporate bonds Government Securities Alternative Investments Total
Active Asset allocation Any percentage from 1% upto 50% Any percentage from 1% upto 100% Any percentage from 1 upto 100% Any percentage from 1% upto 5%  
Example 1 0 0 100 0 100
Example 2 50 ( Max) 25 20 5 ( Max) 100
Example 3 30 35 30 5 100


Note : A subscriber can have any combinations of the allocations, by having exposure to the above asset classes . In any event ,under the active asset allocation , The subscriber cannot have an allocation of more than 50% to Equity and 5% to the Alternative investment asset class.



Auto choice:

In the case of the subscriber not wanting to exercise the above “Active Choice” , could use the AUTO choice. Please have a look at the allocation table. There are three allocations , which are also known as “ Life cycle funds”



Aggressive Life cycle fund ( LC – 75)
Age Asset class Equity Asset class Corporate Asset class G- Secs
Upto 35 years 75% 10% 15%
Upto 36 years 71% 11% 18%
Explanation rowThere will be a change every year on the birth date of the subscriber A reduction of 4 % every year in equity would be moved by 1% to Corporate and 3 % to G SECS 1% would be added here to the corporate asset class 3% percent would be added here from the remaining asset class
AT 55 years of the Subscriber 15% 10% 75%


Moderate Life cycle fund ( LC – 50)
Age Asset class Equity Asset class Corporate Asset class G- Secs
Upto 35 years 50% 30% 20%
Upto 36 years 48% 29% 23%
Explanation rowThere will be a change every year on the birth date of the subscriber A reduction of 2 % every year in equity would be moved to G -secs A reduction of 1% would be moved to G -secs 3% percent would be added here from the remaining asset class
AT 55 years of the Subscriber 10% 10% 80%


Conservative Life cycle fund ( LC – 25)
Age Asset class Equity Asset class Corporate Asset class G- Secs
Upto 35 years 25 % 45 % 30 %
Upto 36 years 24% 43% 33%
Explanation rowThere will be a change every year on the birth date of the subscriber A reduction of 1 % every year in equity would be moved to Corporate A reduction of 2 % would be moved to G -secs 3% percent would be added here to the Government Asset class
AT 55 years of the Subscriber 5% 5% 90%


To get more details of the asset allocation , Please click here on the below mentioned link

http://pfrda.org.in/WriteReadData/Links/LC%2075%20and%20LC%2025d78e41ac-0f61-47e0-9a21-3663cbfc8c75.pdf