Business
NPS Active vs Auto Choice: What Works In Volatile Markets?
Last Updated:
NPS lets Indians aged 18-70 invest in bonds, government securities, or equity, with active or auto asset allocation and pension benefits at age 60.
Choosing between control and convenience: NPS Active vs Auto Choice during market volatility.
The National Pension Scheme (NPS) is a government-backed retirement scheme, allowing salaried professionals to save for after-job life.
NPS provides people with the option of investing in corporate bonds, government securities or equity. If you are an Indian citizen between the age of 18 to 70 years, you can invest in NPS. Under this scheme, you can contribute regularly during your working age. After this, at the age of 60, you can withdraw a part of the accumulated money and can get regular pension income from the remaining amount.
NPS gives two options to the subscriber to invest in the scheme, auto and active. An auto choice is an option in which the subscribers give the fund manager the freedom to invest their money wherever they want, whereas, in active choice, the subscriber tells assets his money is to be invested.
What is an active choice in NPS?
This option is available to NPS members who want to select their own asset blend. Subscribers can select the ratio in which their money will be spread across different asset classes under this choice. In other words, you have a say in the assets you own. Even within this option, there are restrictions because a maximum of 75% can be allocated to stocks. This maximum was increased a few years ago from 50%.
What is an auto choice in NPS?
There are three funds in NPS for auto allocation (NPS auto choice option). There is a Default Moderate Life Cycle Fund. In this, the maximum equity investment can be up to 50 per cent. The second is the Conservative Life Cycle Fund, which allows only up to 25% investment in equities. The third is the Aggressive Life Cycle Fund in which you can invest up to 75% in equity.
If you want to choose the active choice, consider three things before doing so. First, are they able to do the right capital allocation by valuing different asset classes? Secondly, if the subscriber has investments elsewhere and NPS is only a part of his overall portfolio, can they go for active choice? Thirdly, if there is a need to change the NPS portfolio in future, you will do so. If you consider yourself true on these three conditions, then you should choose the active choice option to invest in NPS.
Which Is Better Choice?
At a time of market volatility, when performance has remained muted for the past six months to a year, there are concerns about overexposure to equities among a section of subscribers.
“In volatile phases, this design (auto option) can be a big advantage. There is no temptation to time the market. There is no last-minute panic exit. The portfolio quietly adjusts on its own,” Ajay Kumar Yadav, CFP CM, Group CEO& CIO , Wise FinServ added.
On the other hand, Active Choice offers greater flexibility. Yadav explained that it allows investors to decide how much to allocate to equity, corporate bonds, and government securities within prescribed limits. According to him, this option suits investors who understand markets and are comfortable managing asset allocation decisions.
“For example, when interest rates soften, increasing exposure to government securities may enhance returns. After sharp equity corrections, staying invested or even raising equity allocation can strengthen long-term compounding,” he said.
Shantanu Awasthi, Co-founder and CEO of Mavenark Wealth, said Auto Choice operates within a predefined asset allocation structure managed under a single AMC framework. “Auto Choice confines investors to a predefined asset allocation structure managed within a single AMC,” he said, adding that the model offers simplicity and built-in discipline but limits flexibility.
According to Awasthi, Auto is essentially a structured, convenience-led approach where investors outsource both asset allocation and fund selection. While this reduces decision fatigue, it restricts customization and tactical shifts during changing market cycles.
CA Niresh Maheshwari, Director at Wealth Wisdom India Pvt. Ltd., said the bigger risk during volatility lies in investor reaction rather than price swings. “When markets turn volatile, the real risk isn’t the fluctuation, it’s how investors react to it,” he said.
Maheshwari explained that Active Choice may suit investors who understand asset allocation and are comfortable maintaining higher equity exposure, even as they age. “Active Choice are suitable to those who understand markets and asset allocation, want higher equity exposure even as they age, and are comfortable monitoring their portfolio,” he said. However, he warned that discipline is critical — “Without it, flexibility becomes overreaction.”
For investors who prefer a hands-off approach, Maheshwari said Auto Choice may offer more comfort. “Auto Choice works for those who prefer a set-and-forget approach and don’t want to manage risk themselves,” he said. The life-cycle model automatically reduces equity exposure with age, limiting the need for tactical decisions during market swings.
“For long-term retirement investing, behaviour and consistency matter far more than trying to time the market,” Maheshwari added.
Click here to add News18 as your preferred news source on Google.
Check JEE Mains Result 2026 Link Here
February 16, 2026, 14:14 IST
Read More
Business
‘India solidly through global shocks’: EAM Jaishankar calls for ‘hedge, de-risk, diversify’ strategy amid Iran war – The Times of India
External affairs minister S Jaishankar on Saturday said that India has “solidly come through” a the ongoing turbulent geopolitical situation amid the Middle East conflict and the Russia-Ukraine war, adding that the country has been “managing domestic and external challenges successfully.”Speaking at the 15th Annual Convocation Ceremony of IIM Raipur, he said countries today must focus on “hedging, de-risking and diversifying” as the global order changes rapidly.
He said the world is going through a “structural” shift, adding, “The global order is changing before our very eyes with visible shifts in the relative power and influence of countries. The politics of some societies find it difficult to come to terms with these changes.”Jaishankar also said, “New developments in technology, in energy, military capabilities, in connectivity and in resources have encouraged risk-taking in an increasingly competitive environment. Everything today is being leveraged, if not actually weaponised. The world is then confronted with the prospect of securing itself in an increasingly volatile and unpredictable environment. This has necessitated the need to hedge, de-risk and diversify.”He said India has reasons for optimism compared to many other countries. “There is an optimism in our society that is lacking in many other parts of the world,” he said, adding that India is now among the top five economies and has handled recent global shocks well.He further stated, “No one can dispute that the multiple global shocks that have recently tested our resilience, and that India has come through that solidly. We have managed both domestic and external challenges fairly successfully.”The minister said building national capabilities is key for India’s goal of Viksit Bharat 2047. He also praised “inclusive growth, representative politics, and decisive leadership.”He said, “Building national capabilities has become more critical in the light of the global trends that I have mentioned… We must endeavour to build and secure within our control as many capacities as we can.”On foreign policy, Jaishankar said India is focusing on expanding market access, securing resources and technology, and supporting Indians abroad, while promoting “Brand India.”“Our foreign policy is today focused on expanding market access for Indian producers. It is also focused on helping to secure resources, technologies and essential goods. It looks after Indians… And it promotes Brand India,” he said.These remarks come at a time when the Middle East tensions that began on February 28 with US-Israel strikes on Iran have stretched beyond the 1 month mark. The crisis has since intensified with Iran’s chokehold over the strategically crucial Strait of Hormuz, sending ripples to oil baskets across the globe.
At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
Prices of gold and silver remained stable in domestic and international markets on Saturday.
In the local market, the price of gold per tola held steady at Rs490,362, while 10 grams of gold remained at Rs420,406.
On the global market, gold prices per ounce were stable at $4,676.
Silver prices also remained firm, with one tola trading at Rs7,794 and 10 grams at Rs6,682. Globally, the price of silver per ounce held steady at $73.10.
Read: SBP injects Rs13.68tr into market
Yesterday, gold prices in Pakistan rose, tracking an upward trend in the international market. In the domestic market, the price of gold per tola climbed by Rs3,400 to settle at Rs490,362.
Likewise, the price of 10 grams of gold increased by Rs2,915, reaching Rs420,406, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
A day earlier, on Thursday, gold prices had declined, with the per tola rate falling by Rs7,100 to Rs486,962.
In the global market, gold prices gained $34, reaching $4,676 per ounce, including a $20 premium.
Moreover, silver prices also moved higher, rising by Rs160 to Rs7,794 per tola.
Meanwhile, on Friday, the Pakistani rupee posted a slight gain against the US dollar in the interbank market.
By the close of trading, the local currency stood at 279.10, appreciating by Rs0.01 against the greenback. On Thursday, it had settled at 279.11.
In global markets, China’s yuan strengthened against the US dollar as the latter steadied, with investor attention shifting to the release of US payroll data later in the day.
The dollar had surged a day earlier on safe-haven demand after US President Donald Trump signalled that the Iran conflict could persist.
The spot yuan opened at 6.8930 per dollar on Friday and was last trading 37 pips higher than its previous close.
Business
Pakistan Petrol Crisis: Petrol shock, free rides & more: How is Pakistan dealing with Hormuz energy crisis – The Times of India
The Middle East crisis has stretched beyond the one month mark, sending ripples across the globe. While somes nations are hiking fuel prices, others are introducing other measures to cushion consumers from the impact while balancing energy reserves. Pakistan is no stranger to the ongoing energy volitality as the country imports almost 85% of its supplies through the Strait of Hormuz. Pakistan government has already raised petrol prices multiple times since the conflict began, with the last raise being on Friday. The sharp rise in fuel prices pushed the government to roll out emergency relief measures, including free public transport in key regions, as public anger spilled onto the streets. Authorities announced on Friday that commuters in Islamabad and Punjab will not have to pay fares on state-run transport for the next 30 days.
Balancing Hormuz crisis and consumer interest
The decision follows widespread unrest after petrol prices were raised overnight by 42.7% to 485 rupees per litre, triggering protests and long queues at fuel stations. However, after public outrage, Pakistan’s PM Shehbaz Sharif later revised the hike, bringing petrol down to 378 rupees per litre. “This decrease will be applicable for at least one month,” he said during a televised address, adding, “I promise I will not rest until your life is back to normal.”Coming to diesel prices, the government had increased HSD price by PKR 184.49 per litre, from PKR 335.86 to PKR 520.35, but abolished the levy, providing some relief to citizens.Detailing the relief measures, interior minister Mohsin Naqvi said, “All public transport in Islamabad will be made free of cost for the general public for the next 30 days, starting tomorrow (Saturday),” noting that the government would shoulder a cost of 350 million rupees.Punjab has mirrored the move, removing fares on public transport and introducing “targeted subsidies” for trucks and buses. CM Maryam Nawaz Sharif also appealed to transport operators not to shift the burden onto passengers, saying, “We promise to relieve the public of economic burden as soon as conditions improve.”In Karachi, similar steps have been taken by the Sindh government, which announced subsidies aimed at motorcyclists and small farmers.
Middle East tensions strain Pakistan
The developments come against the backdrop of rising global energy disruptions linked to the US-Israel war on Iran, which began on February 28. The conflict has led to retaliatory strikes across the Gulf and disrupted movement through the Strait of Hormuz, a vital route for energy supplies, particularly to Asia.To manage the strain, Pakistan has introduced a series of fuel-saving steps, including a four-day workweek for many government offices, extended school holidays and a shift to online classes in some cases.The economic pressure is being felt acutely in a country where about 25% of the population of 240 million lives in poverty, according to World Bank figures. Earlier in March, fuel prices had already been increased by 20 percent, with authorities initially resisting further hikes.Protests broke out on Friday in Lahore, where demonstrators called for the government to withdraw the increase. “The government, overnight, has dropped a ‘petrol bomb’ on its people,” said Naveed Ahmed, a 39-year-old protestor. “Our nation cannot bear this situation right now. This storm of inflation must be stopped, and relief should be provided to the public.”Hafiz Abdul Rauf, another protester, questioned the reasoning behind the hike, saying, “The rise we are seeing is not due to the (Iran) war, but to pressure from the IMF, pressure that must be resisted. For God’s sake, step back from these demands and show some compassion for the people.”The pressure is not limited to Pakistan. Bangladesh has also raised prices of liquefied petroleum gas and compressed natural gas by 29%. Meanwhile, the International Monetary Fund warned earlier this week that vulnerable economies face not only rising energy costs but also disruptions in supply chains. On March 28, it said it had reached an initial agreement with Pakistan on a $1.2-billion support package.
This Smart Sprinkler Thinks It Knows Your Lawn Better Than You Do
Hackers Are Posting the Claude Code Leak With Bonus Malware
‘India solidly through global shocks’: EAM Jaishankar calls for ‘hedge, de-risk, diversify’ strategy amid Iran war – The Times of India
-
Entertainment1 week agoLee Sang-bo dies at 45: Funeral details revealed
-
Sports1 week agoIllinois defense gets tough, ousts Houston to reach Elite Eight
-
Sports6 days agoUSMNT handed reality check by Doku, Belgium ahead of World Cup
-
Sports6 days ago2026 NCAA men’s hockey tournament: Schedule, results
-
Business1 week agoHow do you spot a fake online review?
-
Fashion1 week agoChina rolls out tariff cuts on Congo imports from April 1
-
Fashion1 week agoEU apparel imports slump 15.48% YoY in Jan; Bangladesh hardest hit
-
Sports7 days agoMan City show why they are worthy WSL title winners as tired United wilt