NPS allows you an investment choice, you can opt for either active choice or auto choice. Active choice gives you more control over your portfolio and you can use it if you are younger or have a high risk profile. For people with low knowledge of investment, an asset manager will decide the asset allocation for you.

• In the active choice, you can create your portfolio with a mix of equity (maximum 50%), corporate bonds and government securities.
• In the auto choice, the fund manager will create a portfolio mix with the same asset classes (as in the active), but the asset allocation will be decided based on your age. For instance, the older you are, the more stable and less risky your investments while for younger investors higher allocation will be towards equity.