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    Question

    In NPS, the higher exposure limit for investment is

    available in which asset class?
    A Corporate bonds Correct Answer Incorrect Answer
    B Government securities Correct Answer Incorrect Answer
    C Equity (E) Correct Answer Incorrect Answer
    D Alternate assets Correct Answer Incorrect Answer
    E Fixed deposits Correct Answer Incorrect Answer

    Solution

    NPS has 4 asset classes: Equity (E), Corporate Bonds (C), Government Securities (G), Alternate Assets (A).  Government securities (G) are the safest, and hence allow higher exposure limits, especially for conservative investors or Auto Choice lifecycle funds. Equity has capped exposure (typically 50–75%).

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