In the National Pension System (NPS), there are two main investment options: Active Choice and Auto Choice.

A. Active Choice:

1. Flexibility: You can decide how your funds are allocated across different asset classes
   
   

2. Equity Cap: Maximum 75% in Equities till age 50, gradually reducing to 50% by age 60
   

3. Allocation Limits till Age 50:

• Equity: 75%
• Debt: 100%
• Alternate Investments: 5%

Equity Allocation Matrix for Active Choice

Age (years)	Max. 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%

B. Auto Choice:

1. Lifecycle Fund Allocation: Based on the selected fund type (Aggressive, Moderate, Conservative).
2. No Asset Class A: Auto choice does not include asset class A.

C. Lifecycle Fund Types:

1. Aggressive Life Cycle Fund:

• Equity, Government Bonds, Corporate Bonds: 75:10:15 (up to age 35), gradually reducing.

2. Moderate Life Cycle Fund:

• Equity, Government Bonds, Corporate Bonds: 50:20:30 (up to age 35), gradually reducing.

3. Conservative Life Cycle Fund:

• Equity, Government Bonds, Corporate Bonds: 25:30:45 (up to age 35), gradually reducing.

Asset Allocation Over Time:

Age	Aggressive Fund	Moderate Fund	Conservative Fund
Asset class in (%)	E : G : C	E : G : C	E : G : C
Up to 35 years	75 : 10 : 15	50 : 20 : 30	25 : 30 : 45
40 years	55 : 30 : 15	40 : 35 : 25	20 : 35 : 45
45 years	35 : 45 : 20	30 : 50 : 20	15 : 25 : 60
50 years	20 : 60 : 20	20 : 65 : 15	10 : 15 : 75
55 years	15 : 75 : 10	10 : 80 : 10	5 : 5 : 90