28 I want to understand the different NPS Schemes E, C, G, and A and what should keep in mind while investing in these schemes? | iCommunity ICICIdirect

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Community User Posted on 08:33pm 28-Jan-2021

I want to understand the different NPS Schemes E, C, G, and A and what should keep in mind while investing in these schemes?
  • ICICIdirect Executive On behalf of our NPS Product Manager: Active choice: Unlike traditional investment products, NPS offers you with the flexibility to design your own portfolio. Depending on your risk appetite, you can design your portfolio by allocating funds amongst the available four asset classes. This is called active choice. Following are the four asset classes are available under active choice:

    Equity or E
    Corporate debt or C
    Government securities or G
    Alternative investment funds or AIF

    Auto choice: at times designing your portfolio can be a little delicate and time consuming. NPS gives you the flexibility to opt for a dynamic and automatic allocation of your portfolio in case you do not want to exercise an active choice. This option is called the auto choice.

    In auto choice, your money will be invested in asset classes - E, C and G - in defined proportions based on your age. As individual s age increases, exposure to equity and corporate debt is gradually reduced and that in government securities is increased. Depending upon the risk appetite of subscriber, there are three different options available within auto choice-aggressive, moderate and conservative.

    Aggressive (lc-75) - maximum equity exposure is 75% up to the age of 35
    Moderate (lc-50) - maximum equity exposure is 50% up to the age of 35
    Conservative (lc - 25) - maximum equity exposure is 25% up to the age of 35

    04:16pm 01-Feb-2021