Economics · Economy
The Pension Fund Regulatory and Development Authority (PFRDA) allows subscribers of the National Pension System (NPS) to choose from various investment options. What is the key objective of providing the 'Auto Choice' option in NPS?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To allow the subscriber to switch their pension fund manager every day based on market performance.
- 2To shift all the accumulated corpus to the government scheme upon retirement.
- 3To allow the subscriber's funds to be automatically allocated across asset classes (Equity, Corporate Debt, G-Secs) with a pre-defined age-based risk mitigation strategy.✓
- 4To invest the entire corpus only in corporate bonds to ensure a higher return.
Correct answer
To allow the subscriber's funds to be automatically allocated across asset classes (Equity, Corporate Debt, G-Secs) with a pre-defined age-based risk mitigation strategy.
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