New Delhi, Aug. 25 -- The National Pension System (NPS) offers two distinct investment approaches for subscribers. Understanding both options helps individuals build their retirement corpus effectively.

Auto Choice is a predefined, age-based investment strategy. The fund manager automatically adjusts asset allocation as subscribers age. This suits those preferring a hands-off investment approach.

Auto Choice offers multiple lifecycle fund options for subscribers. LC25 caps equity at 25% until age 35. LC50 allows up to 50% equity exposure similarly. LC75 permits the highest equity exposure among these options. Equity allocation goes thinner as subscribers approach retirement age.

Active Choice gives subscribers full control over asset a...