An NPS Tier 1 account, backed by the Indian government, builds a retirement corpus through locked-in contributions until age 60, with limited early withdrawal options.
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The choice of pension fund managers has also broadened. Now, there are 10 pension fund managers to choose from. NPS investors are also allowed to switch their pension fund once in a year. From this year onwards, the PFRDA has allowed investors to spread their investments across three different pension fund managers. ET Wealth identifies the best performing NPS funds to help investors decide which pension fund manager they should go with.
Go for Active choice if you have the time and skill to actively rebalance your NPS corpus regularly; pick Auto if you want to outsource asset allocation decision-making.