Key Highlights
- Another unique characteristic of NPS is the flexibility it offers.
- There are multiple investment options for NPS subscribers as they can determine their allocation to different asset classes such as equity, government securities, corporate debt, and alternative investment fund (REITs and InvITs).
- There are broadly two investment choices for NPS subscribers: active choice and auto choice.
- Active choice: Under active choice, investors can invest up to 75% in equity (which is the maximum), whereas the maximum cap for an alternative investment fund is 5%.
- The maximum for debt instruments is 100%.
