NPS offers two modes of investing- active and auto. Auto choice.Auto choice. It is recommended to opt for Auto Choice until you have good knowledge and experience of investing in market linked investment options. Active vs auto In case of active choice, you can select your own asset allocation across government securities, corporate bonds, equity and alternate investment funds. 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. 1. What are investment choices offered in NPS? The subscriber has to submit the physical application form (Form-UOS-S3/CS-S3) to change Scheme Preference. Auto choice: When the investments are done by the fund manager, according to the age of the investor. There are two ways to invest in NPS – Active Choice and Auto Choice. In the auto mode, the proportion of your investments is pre-decided based on your age. Active choice: Where the subscriber can choose where he or she wishes to invest the money. Choice of investments: The NPS at present has two broad options to select from – Active and Auto choice. If you wish to change this ratio, you need to switch to the active mode first. Investments in NPS are crowned with a number of income tax related exemptions. Investment Choice & NPS Asset Allocation. Active Choice; Auto Choice; I have written about NPS Active vs NPS Auto Choice in detail earlier. Equity Allocation Matrix for Active Choice Age (years) Max. Under Active Choice, the NPS subscriber can allocate funds amongst the various fund options as per one’s choice… 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. 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. Tax Benefits Related to the NPS. But remember, scheme preferences can be changed only once a year. Deepesh, do you know if active choice equity allocation remains at 50% irrespective of age? Switching between active and auto choice in NPS. Switching between the active and auto choice is permitted but can be done only once in a year. 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. You have choice to invest in various asset classes like equity, corporate bonds, and government securities either through Active choiceActive choiceActive choice or Auto choice. 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