Active Choice; Auto Choice; I have written about NPS Active vs NPS Auto Choice in detail earlier. Active choice – Under this option, subscriber selects the allocation pattern amongst the three funds E, C and G. The Maximum allocation to Equity can be 75% and 100% in Corporate or Govt securities. What are investment choices offered in NPS? Auto choice: When the investments are done by the fund manager, according to the age of the investor. Investments in NPS are crowned with a number of income tax related exemptions. You can opt for ‘Active choice’ while investing in NPS. Active vs auto Active Choice It is recommended to opt for Auto Choice until you have good knowledge and experience of investing in market linked investment options. Under Active Choice, the NPS subscriber can allocate funds amongst the various fund options as per one’s choice… Tax Benefits Related to the NPS. But here are the highlights which are important from this post’s perspective: NPS Active Choice – In this you get to control the asset allocation between equity and debt. Auto vs Active: The better choice According to experts, you should choose Active choice only if you are aware of what is the right asset allocation for retirement savings and have a decent understanding of various asset classes, market trend and their behaviour. In case of active choice, you can select your own asset allocation across government securities, corporate bonds, equity and alternate investment funds. Equity Allocation Upto 50 75% 51 72.50% 52 70% 53 67.50% 54 65% 55 62.50% 56 60% 57 57.50% 58 55% 59 52.50% 60 & above 50% 2. NPS offers two modes of investing- active and auto. Under National Pension Schemes, you can either pick your own asset allocation (Active Choice) or outsource it to your NPS fund manager (Auto choice). Deepesh, do you know if active choice equity allocation remains at 50% irrespective of age? Its clear from your blog (I also checked on NPS site) and circular that Aggressive option is available only to Auto choice subscribers (All citizen model) and will be reduced to 15% at the age of 55. Investment Choice & NPS Asset Allocation. In the auto mode, the proportion of your investments is pre-decided based on your age. Equity Allocation Matrix for Active Choice Age (years) Max. Switching between active and auto choice in NPS. Auto choice.Auto choice. Choice of investments: The NPS at present has two broad options to select from – Active and Auto choice. Different investment choices. Switching between the active and auto choice is permitted but can be done only once in a year. If you wish to change this ratio, you need to switch to the active mode first. 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