NPS Active vs Auto Choice: Which is Better for Volatile Markets?

• NPS offers two investment options: Active Choice (subscriber decides asset allocation) and Auto Choice (fund manager decides).
• Active Choice allows subscribers to select asset blend, with up to 75% in stocks, suitable for market-savvy investors.
• Auto Choice has three life cycle funds (Moderate, Conservative, Aggressive) with predefined equity limits, offering simplicity and discipline.
• Experts suggest Auto Choice for volatile markets as it prevents panic exits and adjusts portfolios automatically.
• Active Choice provides flexibility for those comfortable managing asset allocation, but requires discipline to avoid overreaction.