Subscriber has the option of 3 types of funds under NPS – Scheme E (Equity), Scheme C (Corporate Bonds) and Scheme G (Government Securities).
Scheme E- Investment would be in equity market instruments
Scheme C- Investment would be in credit risk bearing Fixed Income instruments
Scheme G- Investment would be in Government securities
Subscriber can decide on his own the asset mix. However, the exposure to Equity is restricted to maximum of 50% of the Contribution amount.
Subscriber also has an option of Life Cycle Fund which is also known as Auto Choice. Under this mode, investment across three funds is done as per the age of the employee. At the lowest age of entry (18 years) the auto choice will entail investment of 50 % of pension wealth in Scheme "E" , 30% in Scheme "C" and 20% in Scheme "G". These ratios of investment will remain fixed for all contributions until the subscriber reaches the age of 36. From age 36 onwards, the weight in "E" and "C" scheme class will decrease to 48% and 29%, respectively and the weight in "G" class will increase to 23% as shown in the table below:
Subscriber can change the asset mix / pension fund manager once in a financial year.
Subscriber can have different Investment choice (Auto / Active) / pension fund manager for Tier I and Tier II account.
Content for Point 1 (b) (vii) is as below.