NPS is National Pension System, a voluntary defined contribution retirement saving scheme.

NPS Accounts Types: 1. Tier 1 Account 2. Tier 2 Account

Tier 1 Account:   Primary NPS  account aimed for retirement corpus

Tier 2 Account:   Voluntarily Saving account which offer more flexibility than Tier 1 account

Two Types of Investment Choice Available: Active Choice Auto Choice

Active Choice: Investor can choose his/her asset class as per his/her choice

Auto Choice: Money invested in asset classes as per age of investor

3 Types of Auto Choices: Aggressive: 75% Moderate: 50%  Conservative: 25% Equity exposure up to the age of 35yr

ECG of NPS:  Money invested in these asset class

4 Types of NPS Schemes: A Type: Alternative Bonds E Type: Equities C Type: Corporate Debt G Type: Government Securities