Where will my money get invested in NPS?

Following are the asset classes that are available for investment under NPS:

• Equity or E:¬†A 'high return-high risk' fund that invests predominantly in equity market instruments

• Corporate Debt or C:¬†A 'medium return-medium risk' fund that invests predominantly in fixed income bearing instruments

• Government Securities or G:¬†A 'low return-low risk' fund that invests purely in Government Securities

• Alternative Investment Funds or A:¬†In this asset class, investments are being made in instruments like CMBS, MBS, REITS, AIFs, Invlts etc.

If you are a conservative investor, you can choose to invest your entire pension wealth in the C or G asset class. However, if you want to have exposure to equity, you can allocate a maximum of 50% of your money to asset class 'E' or up to 5% in Alternative Investment Funds.