Hi Pankaj,
I am 31 year old. I am investing in NPS. Can you suggest me which choice (Auto Choice or Active Choice) should I opt to get better return after age of 60?
Please suggest me.
Thanks,
Mayank
1 Answers
In case of active choice, You will have the option to actively decide as to how your contribution is to be invested in the three options E(equity), C(Corporate bonds) and G(Government Securities).
Whereas in case of Auto choice, percent share in E, C and G would be automatically set based on your age. Till 35 years of age this ratio would be 50-30-20. After that each year E and C share would reduce by 2 and 1 respectively and G would increase by 3, till 55 years of age. After 55 years, ratio would remain 10-10-80.
If you want better returns, you may choose active choice and put equity portion higher that even 50%.
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