Planning to invest in NPS? One tip to build a larger retirement corpus

A good start is half the battle won. It's the same with the National Pension Scheme (NPS), an investment that helps you build wealth for retirement. When subscribing to the NPS, you are offered two investment options: Auto or Active. So, which one should you choose? Which is the right option that'll help you build more wealth in the long run? Let's deep dive and understand which option to choose. Auto choice What it is Before discussing auto choice, you should know that the NPS broadly requires you to put your money across two asset classes: Equity and debt. (The debt portion is further divided into corporate bonds and government bonds. Then, there's alternate investment, too). But for simplicity, let's assume you put your money in equity and debt. Under the auto choice, your money is automatically allocated to equity and debt based on age. Each year, the NPS reduces your equity exposure and allocates more money in debt. This choice is usually opted by people who find it troublesome

This article was originally published on June 12, 2024.