Switch mode
Move between Active and Auto Choice.
About NPS
Investment Choices
How your NPS money is invested — the asset classes, the two ways to allocate, the fund managers, and how freely you can change it all.
Where it’s invested
The NPS asset classes
Your contributions are spread across the NPS asset classes. Tap a card to learn more.
Read more — the caps and role of each asset class
Your money is spread across the regulated NPS asset classes. Each carries a different risk-return profile, and equity is capped to keep the portfolio prudent.
Limits and character
- Equity (E) — highest growth potential, capped at 75%
- Corporate bonds (C) — steadier fixed income, moderate risk
- Govt securities (G) — sovereign-backed, the stability anchor
- Alternatives (A) — merged into Schemes C and E (Dec 2025); no longer a separate class
Equity’s ceiling tapers as you age, gradually protecting the corpus as retirement nears.
Two ways to allocate
Active Choice vs Auto Choice
Decide the split yourself, or let a lifecycle fund manage it by age.
You decide
Active Choice
Set your own allocation across the asset classes and adjust it as your view changes.
- Choose your own E / C / G split
- Equity capped at 75% (tapers with age)
- Rebalance across E, C and G as your view changes
- Best for hands-on, informed investors
Set & forget
Auto Choice
A lifecycle fund automatically shifts from equity toward debt as you get older.
- Aggressive (LC75) — up to 75% equity
- Moderate (LC50) — up to 50% equity
- Conservative (LC25) — up to 25% equity
- Rebalances automatically by age
Which one? Pick Auto Choice for a hands-off, age-based glide path; choose Active Choice if you want to control the mix yourself.
Read more — the three Auto Choice lifecycle funds
Under Auto Choice, a lifecycle fund holds a set equity level until age 35, then automatically trims equity each year so the portfolio grows more conservative as retirement approaches.
The three glide paths
- LC75 (Aggressive) — up to 75% equity to 35, then −4% a year
- LC50 (Moderate) — the default; up to 50% to 35, then −2% a year
- LC25 (Conservative) — up to 25% to 35, then −1% a year
- The balance sits in government and corporate bonds
Active Choice, by contrast, lets you set the E / C / G split yourself within the same caps — better suited to hands-on, informed investors.
More granular control
Multiple Scheme Framework
A newer PFRDA framework that lets subscribers spread investments with more flexibility. Tap for detail.
Read more — the Multiple Scheme Framework
A newer PFRDA framework that lets a subscriber’s contributions be spread across more than one scheme rather than a single default — giving finer control over how the retirement corpus is diversified.
What it changes
- Allocate across multiple schemes at once
- More precise diversification within NPS
- A recent, phased regulatory development
- Mechanics follow prevailing PFRDA guidelines
Who manages the money
Pension Fund selection
You choose a PFRDA-registered Pension Fund Manager (PFM) to invest your contributions. Each PFM runs the same regulated asset classes, so you can compare them and pick the one that suits you.
1
Compare
Review PFMs on long-term performance and consistency.
2
Choose
Select one PFM for your account while opening or later.
3
Stay invested
Your money is managed under PFRDA oversight and low charges.
4
Review
Re-check periodically — past returns are not a guarantee.
Read more — how Pension Fund Managers are chosen and overseen
You pick one PFRDA-registered PFM to invest your contributions. Every PFM runs the same regulated asset classes under low-cost mandates, so they can be compared like-for-like.
Choosing well
- Compare on long-term, consistent performance
- All PFMs work under the same regulated framework
- Charges are among the lowest of any product
- You can switch your PFM later
- Past returns are not a guarantee
- Review your choice periodically
Staying flexible
Changing your choice or fund manager
NPS lets you adjust your investments within the limits set by PFRDA.
Re-allocate
Change your split across E, C and G.
Change PFM
Switch your Pension Fund Manager.
Within limits
A capped number of changes each year.
Online
Done through eNPS or the CRA portal.
The number of permitted changes and the exact process follow the prevailing PFRDA rules and should be verified before switching.
Read more — what you can change, and how often
NPS is flexible within PFRDA’s limits — you are not locked into your first decisions. Most changes are done online through eNPS or the CRA portal.
Levers you control
- Switch between Active and Auto Choice
- Re-allocate across E, C and G
- Change your Pension Fund Manager
- A capped number of changes each year
The exact number of permitted changes follows the prevailing PFRDA rules and should be verified before switching.
Good to know
Common questions
Tap a question to read more.
What’s the maximum equity allocation, and does it change with age?
Equity (E) is capped at 75% of the portfolio. Under Auto Choice it tapers down automatically as you get older; under Active Choice the ceiling also steps down in later years, protecting the corpus as retirement approaches.
How should I choose between Active and Auto Choice?
Pick Auto for a hands-off, age-based glide path that rebalances for you; pick Active if you want to set and adjust the E / C / G mix yourself. Auto suits most subscribers; Active suits confident, engaged investors.
How are returns actually generated?
Your contributions buy units in the schemes you choose; their value (the NAV) moves with the underlying equity, bond and government-security markets. That’s why two subscribers who contribute the same amount can end up with different corpuses.
How often can I change my allocation or fund manager?
NPS allows a limited number of changes to your investment choice, asset allocation and Pension Fund Manager each year, done online. The exact limits follow the prevailing PFRDA rules.
How much does past performance matter when picking a fund manager?
It’s a guide, not a guarantee. Compare managers on long-term, consistent performance across market cycles rather than a single strong year, and remember all PFMs operate under the same regulated, low-cost framework.