You can choose the investment mix between equity -high risk with high returns, mainly debt-medium risk and returns and pure debt or G -which offer low returns but very little risks. Equity investment is capped at 50%.
There is also an Auto Choice, where the debt-equity mix varies, depending on the age of the subscriber. The investment option can be changed annually.
The funds are locked in till you are 60 years and on retirement, you are entitled to a lump sum payment, with at least 40% used to buy annuities that will earn a monthly pension.
An individual can withdraw 25% of the contribution before he or she turns 60.
Investment choices available in NPS:
The NPS offers two choices:
1) Active Choice: This option allows the investor to decide how the money should be invested in different assets.
2) Auto choice or life-cycle fund: This is the default option which invests money automatically in line with the age of the subscriber.
Investment options available under Active Choice:
The Active Choice offers three funds or investment options: Asset Class E (invests 50 per cent in stocks); Asset Class C (invests in fixed income instruments other than government securities); Asset Class G (invests only in government securities). An investor can choose one of these funds or opt for a combination of them.
You can apply for an attractive offer with best possible rate of interest and terms for Personal, Business and Home Loan.