NPS (National Pension System) – Eligibility, Types, Contribution & Charges

The National Pension System (NPS) is a pension system open to all citizens of India. The NPS invests the contributions of its subscribers into various market-linked instruments such as equities and debts and the final pension amount depends on the performance of these investments.

An Indian citizen in the age group of 18-70 can open an NPS account. NPS is administered and regulated by the Pension Fund Regulatory Authority of India (PFRDA). The superannuation age in NPS is 60, however, individuals can continue until the age of 75.

Partial withdrawals of up to 25% of your contributions can be made from the NPS after three years of account opening but for specific purposes like home buying, children’s education, or serious illness. Partial withdrawal is allowed for three times in the entire life cycle. Further, there is no lock-in period to execute the second and the third partial withdrawal, however, the same applies only to the incremental investment.

NPS Asset Classification	How to Allocate Assets in NPS	NPS Returns
Types of NPS Accounts	Tax on NPS	How to Open an NPS Account
NPS Contribution Limits	NPS Charges	NPS Withdrawal Rules
NPS Calculator	National Pension System Benefits	NPS v/s APY
NPS v/s LPY	NPS v/s VPF	NPS v/s OPS
NPS Settlement TAT	NPS Grievance Redressal Officer	FAQs

NPS Asset Classes

The National Pension System has four asset classes. Asset Class E invests in equities or stocks. Asset Class C invests in Corporate Bonds. Asset Class G invests in Government-issued Bonds and Asset Class A invests in alternative assets like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs).

Class	Investment Asset
E	Equity
C	Corporate Bonds
G	Government Bonds
A	Alternative Assets like REITs & InVITs

Investment Choice & NPS Asset Allocation

Under National Pension System, you can either pick your own asset allocation by selecting Active Choice, else you can opt for Auto choice where the investments are allocated across the asset class in a pre-defined matrix and rebalance every year.

Active Choice

In Active Choice, the subscriber picks the desirable split of his NPS deposits between equities, corporate bonds, government bonds and alternative assets on his own. Accordingly, the subscriber needs to provide Pension Fund Managers (PFMs), and the percentage allocation to each of the asset classes of NPS, as given below.

Subscribers have to decide the allocation pattern amongst E, C, G & A.

Asset Class	Cap on Investment
Equity (E)	75%
Corporate Bonds (C)	100%
Government Securities (G)	100%
Alternate Investment Fund  (A)	5%

Auto Choice

NPS offers an easy option for those subscribers who do not have the required knowledge to manage their NPS investments. In this option, funds are automatically allocated across asset classes as per a pre-defined matrix and it is rebalanced every year as per the age of the subscriber.

Please see the table below for asset allocation in each life-cycle fund:

	Aggressive			Moderate				Conservative
Age	E	C	G		E	C	G		E	C	G
Up to 35 years	75%	10%	15%		50%	30%	20%		25%	45%	30%
40	55%	15%	30%		40%	25%	35%		20%	35%	45%
45	35%	20%	45%		30%	20%	50%		15%	25%	60%
50	20%	20%	60%		20%	15%	65%		10%	15%	75%
55	15%	10%	75%		10%	10%	80%		5%	5%	90%

For Aggressive Investors

Age	Aggressive Life Cycle Fund (LC – 75)
	Asset Class (In %)
	E	C	G
Up to 35 years	75	10	15
36 years	71	11	18
37 years	67	12	21
38 years	63	13	24
39 years	59	14	27
40 years	55	15	30
41 years	51	16	33
42 years	47	17	36
43 years	43	18	39
44 years	39	19	42
45 years	35	20	45
46 years	32	20	48
47 years	29	20	51
48 years	26	20	54
49 years	23	20	57
50 years	20	20	60
51 years	19	18	63
52 years	18	16	66
53 years	17	14	69
54 years	16	12	72
55 years & Above	15	10	75

For Moderate Investors

Age	Moderate Life Cycle Fund (LC – 50)
	Asset Class (In %)
	E	C	G
Up to 35 years	50	30	20
36 years	48	29	23
37 years	46	28	26
38 years	44	27	29
39 years	42	26	32
40 years	40	25	35
41 years	38	24	38
42 years	36	23	41
43 years	34	22	44
44 years	32	21	47
45 years	30	20	50
46 years	28	19	53
47 years	26	18	56
48 years	24	17	59
49 years	22	16	62
50 years	20	15	65
51 years	18	14	68
52 years	16	13	71
53 years	14	12	74
54 years	12	11	77
55 years & Above	10	10	80

For Conservative Investors

Age	Conservative Life Cycle Fund (LC – 25)
	Asset Class (In %)
	E	C	G
Up to 35 years	25	45	30
36 years	24	43	33
37 years	23	41	36
38 years	22	39	39
39 years	21	37	42
40 years	20	35	45
41 years	19	33	48
42 years	18	31	51
43 years	17	29	54
44 years	16	27	57
45 years	15	25	60
46 years	14	23	63
47 years	13	21	66
48 years	12	19	69
49 years	11	17	72
50 years	10	15	75
51 years	9	13	78
52 years	8	11	81
53 years	7	9	84
54 years	6	7	87
55 years & above	5	5	90

Subscribers can change the scheme preference/asset allocation up to four times in a financial year and PFM once in a financial year.

Note: Asset Class E stands for Equity, Asset Class C stands for Corporate Bonds and Asset Class G invests in Government-issued Bonds.

NPS Returns

NPS does not have a fixed interest rate but the returns are market-linked. Contributions in the NPS account can be invested in up to 4 asset classes – equities, corporate bonds, government bonds and alternative assets through various pension fund managers.

The National Pension System is a defined, voluntary contribution pension where contributions made by the subscribers to NPS accumulate till retirement and the entire corpus experiences growth through market-linked returns. It is an EEE instrument where the entire amount accumulated at maturity as well as the whole pension withdrawal amount is tax-free.

Read more about NPS Returns for Tier 1 & Tier 2

Types of NPS Accounts

• Tier I Account: NPS provides you with two types of accounts – Tier I and Tier II. Tier I is a mandatory retirement account where withdrawal before maturity or superannuation is allowed only up to 25% of the investment. 60% of the corpus can be withdrawn on maturity. It is mandatory to buy an annuity from the remaining 40% corpus. If the corpus is less than Rs. 5 Lakh, the subscriber can withdraw 100% of the corpus. In case of pre-closure of account, only 20% is provided as lump-sum and the remaining 80% is used to buy an annuity.
• As per the announcements made in the Union Budget 2019, the withdrawal from NPS is tax-free. The move makes NPS at par with other saving schemes such as PPF and EPF in terms of tax treatment.
• Tier II Account: This is a voluntary retirement-cum-investment account that can be opened only if the subscriber has an active Tier I account.
• Subscribers are free to invest or withdraw their funds anytime according to their convenience from the Tier II account. This account has no tax deductions, for private-sector employees or self-employed persons.
• While presenting Union Budget 2019, the finance minister Nirmala Sitharaman announced that from FY 2020-21, tax benefits can be claimed by central government employees on contributions to the Tier II account but with lock-in period, thus making it at par with Equity Linked Saving Schemes (ELSS).

Tier I Account

Tier II Account

NPS Tax Treatment

Tax Benefits on Investment

• NPS subscribers can claim tax benefits on investment up to Rs. 1.5 Lakh under section 80C of the Income Tax Act, 1961. The deduction comes under the overall upper limit of Rs. 1.5 lakh under section 80C.
• NPS investors can claim additional exclusive tax benefits on investments up to Rs. 50,000 over and above the limit of Rs. 1.5 Lakh under section 80CCD (1b).
• Over and above the investment limit of Rs. 1.5 Lakh under section 80C and limit of Rs. 50,000 under section 80CCD (1b), tax benefits can be claimed on the contributions from the employer up to 10% of the basic salary of the employee under section 80CCD (2). This deduction is available only for employees up to Rs. 7.5 Lakh.

Tax Benefits on Returns

• NPS returns are market-linked and therefore returns depend on the performance on broader market performance. However, returns earned in Tier I investments are entirely tax exempt.

Tax Benefits on Maturity

• NPS account matures at the age of 60. However, only 60% of the accumulated corpus can be withdrawn at the time of maturity. It is mandatory to invest rest 40% of the corpus in annuity.
  Also Read: What is Annuity?

Out of the 60% withdrawn as lump sum, only 40% was tax exempted earlier. The remaining 20% was taxable as per the income tax slab of the subscriber. However, the government has extended tax benefits on the entire 60% withdrawn as lump sum at the time of maturity from FY 2020-21 as announced in the Union Budget 2019. This makes NPS a completely tax-free investment product.

Know more about NPS Tax Benefits

How to Open an NPS Account

You can open an NPS account online.

In this online account opening process, you need your valid PAN, mobile number, Email ID, valid bank account and online payment option (either by net-banking or UPI) at your end.

If in case, your KYC is not available in CKYC registry, you will require your Aadhaar.

National Pension System Login

To login to your NPS Account, you are required to have an active NPS account i.e. PRAN (Permanent Retirement Account Number).

PRAN is a unique 12-digit number that identifies those individuals who have registered themselves under the National Pension System (NPS).

Once you have generated your NPS Account, you can visit CAMS NPS Portal – https://www.camsnps.com/ and login to your account.

1. Login to https://www.camsnps.com/
2. Now, click on “Login” and “Subscriber”
3. Provide your PRAN and Password
4. Provide the generated OTP and submit to login to your NPS account

NPS Contribution

In NPS Tier 1, the minimum initial contribution is Rs. 500. However, the minimum annual contribution to your NPS Tier 1 account is Rs. 1,000. There is no limit to the maximum annual contribution. The minimum amount per contribution is Rs. 500.

In NPS Tier 2, the minimum initial contribution is Rs. 1,000. There is no minimum or maximum annual contribution. The minimum amount per contribution is Rs. 250.

NPS Charges

National Pension System is one of the cheapest investment products available with low charges. The Pension Fund Manager fee is capped at 0.01% compared to 2-2.5% for mutual funds. Other charges in the NPS are also very low as can be seen from the tables below:

CRA Charges

Charge Head	Service Charges*
	Private / Govt.				Lite/APY
PRAN Opening charges		CRA charges for account opening if the subscriber opts for Physical PRAN card (in Rs.)	CRA charges for account opening if the subscriber opts for ePRAN card (in Rs.)		Rs. 15.00
			Welcome kit sent in physical	Welcome kit sent vide email only
	NCRA	40	35	18
	CCRA	40	–	18
	KCRA	39.36	39.36	4
	Note: The reduction in charges will be on the current charge structure and excludes applicable taxes. Charges will be applicable post release of the functionalities by CRAs to capture the choice of NPS subscribers to have physical or ePRAN card.
Annual PRA Maintenance cost per account	NCRA: Rs. 69 CCRA: Rs. 65 KCRA: Rs. 57.63				NCRA: Rs. 20 CCRA: Rs 16.25 KCRA: Rs. 14.40
Charge per transaction	NCRA: Rs. 3.75 CCRA: Rs 3.50 KCRA: Rs. 3.36				Free

POP Charges

Intermediary	Charge Head	Service Charges*
POP (Point-of-Presence)	Initial subscriber registration	Rs. 400
	Initial/Subsequent contribution upload	0.50% of the contribution amount from subscribers subject to a minimum of Rs. 30 and a maximum of Rs. 25,000

PG Charges

Transaction Type	PG Charges (in Rs.)	GST 18% (in Rs.)	Total PG Charges (in Rs. including GST)
UPI	2.50	0.45	2.95
Internet Banking	3.00	0.54	3.5

Here is a sample of charges when you make your NPS contribution:

Service Standards for PoP-NPS and PoP-NPS-Online

NPS Fees & Charges

NPS Circular

NPS Withdrawals

1. You can make up to three partial withdrawals from the NPS Tier I during the entire tenure of the account.
2. The first such withdrawal can be made after 3 years from account opening.
3. The maximum amount that can be withdrawn through partial withdrawals is 25% of your contribution. There is no lock in period to execute the second and the third partial withdrawal. The second and third partial withdrawal is only applicable on fresh investment (The subscriber can withdraw 25% only on fresh contributions after each partial withdrawal).
4. Partial withdrawals from the NPS are tax-free.

In case of an NPS Tier 2 account, there is no lock-in and hence there is no restriction on withdrawals. However, withdrawals from the NPS Tier II account are fully taxable at the slab rate.

You can also go for a premature exit after completing 5 years in the NPS. If you choose this option, you can withdraw only 20% of your accumulated corpus which will be exempt from tax. The balance 80% must be used to buy an annuity (regular pension).

The annuity will be fully taxable as per the tax slab. If the total corpus is less than Rs. 2.5 Lakh then 100% can be withdrawn as lump sum and this withdrawal will be exempt from tax.

If the subscriber wants to exit from the scheme, he/she will have to submit an online withdrawal request to the POP. The POP will process the withdrawal request by logging into the CRA portal.

Read more on NPS Withdrawal

NPS Calculator

NPS Calculator is a unique tool that you can utilise to estimate your future monthly pension and potential investment corpus created through deposits into the NPS account till retirement. NPS calculator typically features the following fields:

• Date of Birth – This is used to calculate your current age and figure out for how many years you will be making NPS deposits.

• Contribution – This can be annual, bi-annual, quarterly or monthly and indicates the periodic contribution being made to the National Pension System Tier 1 account (Tier 2 account does not have tax benefits or withdrawal limitations).

• Expected rate of return – NPS investments are market-linked hence their returns cannot be predicted in advance. Thus the expected rate of return (expressed as a percentage value) is used to calculate the future corpus value of your NPS contributions. Higher the value in this field, higher is the final corpus size.

• Annuity Purchase – This percentage figure indicates the portion of your NPS future corpus that will be used to purchase annuities that determine your monthly pension after retirement. 

Under existing rules, a minimum 40% of NPS corpus is to be mandatorily used for the purchase of annuities. Higher the portion of NPS future corpus used for annuity purchase, greater will be the monthly pension that you will get.

• Annuity Rate – This is the expected rate at which annuities are expected to grow after your retirement. Higher annuity rate will lead to higher pension payout. However, the annuity rate is also market-linked hence, cannot be predicted accurately in advance.

How much Pension will you get in the NPS

This depends on the performance of your NPS funds. Your contributions invested in the National Pension System are invested in assets like equity or debt and earn returns. Your corpus is thus expected to steadily grow over time.

When you hit the age of 60, you can use the accumulated corpus to buy an annuity (monthly pension). The actual pension you get thus depends on the corpus size and the prevailing annuity rates.

For example, if your corpus is Rs. 1 Crore and the prevailing annuity rate for a simple annuity is 8%, you will get an annual payment of Rs. 8 Lakh. This translates to a monthly pension of Rs. 66,666.

Read more about NPS Calculator

How can I choose a Pension Fund Manager (PFM) in the NPS

You have to analyse the previous performance of the different pension fund managers. You can get data on this at http://www.npstrust.org.in/return-of-nps-scheme.

You can also change your NPS fund manager once in a financial year.

Which Pension Funds are listed under NPS

At present there are 11 fund managers who are managing the deposits of NPS subscribers to maximize returns:

• Aditya Birla Sunlife Pension Management Ltd.
• HDFC Pension Management Co. Ltd.
• ICICI Prudential Pension Fund Management Co. Ltd.
• Kotak Mahindra Pension Funds Ltd.
• LIC Pension Fund Ltd.
• SBI Pension Fund Pvt. Ltd.
• UTI Retirement Solutions Ltd.
• Axis Pension Fund Management Ltd.
• Max Life Pension Fund Management Ltd.
• Tata Pension Management Private Limited
• DSP Fund Manager Pvt Ltd.

National Pension System Benefits

1. NPS is a beneficial scheme to invest in as the investments are made into equities which can be risky but also offer higher returns as compared to other tax-saving investment schemes such as the Public Provident Fund. So far, the scheme has delivered 8% to 10% annualized returns.
2. The tax benefits available under NPS are the most important reason why one should consider investing in this scheme. As a long-term investment scheme, it allows a tax deduction up to a maximum of Rs. 1.5 lakh under Section 80C, 80CCD (1) and 80CCD (2). Moreover, the subscribers are eligible to get an additional benefit of Rs. 50,000 which can be claimed by the investor as a tax benefit under Section 80CCD (1B).
3. Since it is a pension scheme, you must keep yourself invested until the age of 60 years. However, NPS allows subscribers to make premature partial withdrawals under special cases. A maximum of 25% of the accumulated amount can be partially withdrawn after the completion of at least 3 years of continuous contributions to the fund. The same can be processed to furnish a child’s marriage, higher education, buying a house or medical emergencies.

National Pension System v/s Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is also a pension scheme regularised by the Government of India primarily for the unorganised sector. Here is a tabular representation of the difference between NPS and APY:

Parameters	NPS	APY
Type	Choice between Tier I and Tier II account	One account
Eligibility	Citizens of India & NRIs / OCIs	Residents of India
Age	Minimum – 18 years Maximum – 70 years	Minimum – 18 years Maximum – 40 years
Investment Particulars	No maximum limit of investing	Predetermined monthly contributions
Minimum Investment	Rs. 500 per month	Rs. 42 (Monthly) or Rs. 125 (Quarterly)
Returns	Subject to contributions made and market movements	Pre-defined returns ranging from Rs. 1,000 to Rs. 5,000
Withdrawal	Only Tier 2 subscribers are eligible for premature withdrawals as per designated rules	Premature Withdrawal can be executed in case of death of contributor or medical illness
Taxation Policy	Tax rebate of up to Rs. 2 Lakh	No benefits
Government Contribution	No Government contribution	Monetary contribution by the Govt.

National Pension System v/s LIC Pension Yojana (LPY)

LIC Pension Plan is a unit-linked deferred pension plan which provides the subscribers a minimum guarantee on the gross premium paid. Let us have a look at the major differences between NPS and LPY:

Parameters	NPS	LPY
Age	Minimum – 18 years Maximum – 70 years	Minimum – 30 years Maximum – 85 years
Eligibility	Indian Citizens and NRIs / OCIs	Indian Citizens
Returns	Not Guaranteed	Assured Returns
Taxation	Tax benefits under Section 80 CCD and 80 C	Tax Benefit under 80 C only
Contributions	No upper limit Minimum – Rs. 500 per month (Tier I) and Rs. 250 (Tier II)	No maximum limit Minimum – Rs.1.5 Lakh
Premature Withdrawal	60% withdrawal after retirement only. At least 40% corpus must be kept invested for regular pension	Withdrawal can be initiated after completion of 3 months of insurance of policy or expiry of the ‘Free-look’ period
Loan	Not possible	Can be availed after 1 year

National Pension System v/s Voluntary Provident Fund (VPF)

Voluntary Provident Fund is a saving scheme listed under Provident Funds. Under this, the employee decides on a fixed contribution made monthly towards the Fund. Here is a comparison table for NPS and VPF:

Parameters	NPS	VPF
Eligibility	Indian Citizens and NRIs	Salaried Individuals
Contribution	No upper limit Minimum – Rs. 500 per month (Tier I) and Rs. 250 (Tier II)	Voluntary (Up to 100%)
Interest Rate	Return in not interest-based	8.75% per annum
Withdrawals	60% withdrawal after retirement only. At least 40% corpus must be kept invested for regular pension	Partial withdrawals available
Taxation Policy	Tax benefits under Section 80 CCD and 80 C	Exempted from tax payments
Asset Allocation	Different asset classes – Equity, Corporate Bond, Government Securities and Alternate Investment Fund	Debt Securities

National Pension System v/s Old Pension Scheme (OPS)

Old Pension Scheme (OPS) was introduced by the Government of India to provide pension benefits to government employees. The scheme was later replaced by the National Pension System in 2004 which works for all Indian citizens and NRIs:

Retirement gratuity providedRetirement, death and service gratuity are provided

Parameters	NPS	OPS
Returns	Depends on contributions made and Market Movements as it is a market-linked scheme	Pre-defined regarding the number of years of service and salary
Contributions	No upper limit Minimum – Rs.500 per month (Tier I) and Rs. 250 (Tier II)	No contribution is made as this scheme works under a pre-defined module of pension provision after retirement
Tax Benefits	Tax benefits under Section 80 CCD and 80 C	Lump sum amount received on commutation of pension is exempted from tax
Gratuity	Retirement gratuity provided	Retirement, death and service gratuity are provided

NPS Settlement TAT

The amount deposited by the customer will be displayed in his/her NPS account within T+3 working days, where T is payment clearance date.

NPS Grievance Redressal Officer

The contact details of NPS grievance redressal officer are as follows:

Name– Ms. Jyotsna Popli

Email– npsgrievanceofficer@paisabazaar.com

Phone– 1800-258-5615

Calling time: 9:30 AM-6:30 PM

To know more about NPS Grievance Redressal Mechanism, click here

National Pension System FAQs

Q1: What would be the withdrawal process if the PRAN of the subscriber is frozen or inactive at the time of withdrawal?

Ans:In case the PRAN of the subscriber is frozen or inactive at the time of withdrawal, the request will be processed like a regular withdrawal.

Q2: What are the minimum and maximum contribution requirements for NPS accounts?

Ans: Subscribers have to make at least one contribution per year to keep their account in running or active mode. The account may be frozen if certain contribution requirements are not met. To unfreeze the account, the subscriber has to make the required contribution. The contribution requirements for each type of account are mentioned here.

For all Citizens	Tier I Accounts	Tier II Accounts
Min. Contribution for Account Opening	Rs. 500	Rs. 1,000
Min. Amount per Contribution	Rs. 500	Rs. 250
Min. Total Contribution Annually	Rs. 1,000	None
Min. Frequency of Contributions	1 per year	None

Q3: Can NRIs open an NPS Account?

Ans: Yes, both NRI and OCI can open NPS accounts.

Q4: Can I invest in both NPS and APY?

Ans: Yes, you can invest in both NPS and APY. There is no bar to this.

Q5: Can I invest in NPS, APY, and other retirement programmes like EPF or PPF?

Ans: Absolutely. There is no rule against investing in multiple retirement programmes.

Q6: What is the nomination and subsequent nomination process?

Ans: Subscribers are required to declare the nominations at the time of the PRAN registration process. However, they can also file a subsequent nomination update request for subsequent nomination.

Q7: Who will receive the investment benefits in the event of the death of the subscriber before the age of 60?

Ans: In the event of the death of the subscriber, the nominee will receive the entire accumulated pension wealth. If the subscriber has not declared a nominee then it will go to the legal heir of the subscriber. In both the cases, there would not be any requirement for purchasing an annuity or a monthly pension plan.

Q8: Can I withdraw my NPS amount if I lose my job?

Ans: No. You can only make partial withdrawals from the NPS account up to 25% of your contributions. This can only be for specific reasons like children’s marriage or education. Unemployment is not a valid ground for withdrawal.

Q9: Can I make partial withdrawals from the NPS?

Ans: Yes, you can do this three years after account opening. You can make partial withdrawals for specified purposes up to 25% of your contributions. Such partial withdrawals can only be made up to three times in your entire tenure in the NPS. The withdrawals can be for:

1. Higher education of children
2. Marriage of children
3. For the purchase or construction of a residential house or flat either in your own name or jointly with your spouse. However if you already own or jointly own a house or flat other than ancestral property, this will not be permitted.
4. For the treatment of any of the illnesses mentioned below. The patient can be the subscriber, his spouse, children or dependent parents.
5. Cancer
6. Kidney Failure
7. Preliminary Pulmonary Arterial Hypertension
8. Multiple Sclerosis
9. Major Organ Transplant
10. Coronary Artery Bypass Graft
11. Aorta Graft Surgery
12. Heat Valve Surgery
13. Stroke
14. Myocardial Infarction
15. Coma
16. Total Blindness
17. Paralysis
18. Accident of serious/life-threatening nature
19. Any other critical illness of a life-threatening nature specified by the PFRDA from time to time

Q10: Can you exit the NPS before the age of 60?

Ans: The National Pension System has a lock-in for a period of five years from account opening. Thereafter you can go for ‘premature exit’ from the National Pension System even before the age of 60. However you have to mandatorily use 80% of their corpus to buy an annuity and can only withdraw 20%. This 20% withdrawal will be exempt from Tax. An annuity is a fixed payment you get for the rest of your life. It can be taken monthly and becomes a monthly pension.

Q11: Whom to contact if I have a problem with my NPS account?

Ans: You can contact CAMS CRA customer care through toll free no. 1800-572-6557 or raise your grievance by login in to your NPS account and you can reach out to your POP.

Q12: What is the National Pension System (NPS) interest rate?

Ans: The scheme does not offer a fixed interest rate. However, the rate of interest is apparently higher than the ROI offered by many other saving schemes.

Q13: How should I divide my NPS funds between asset classes E, C, G and A?

Ans: It depends on your risk appetite. If you are not sure of it, simply select an NPS lifecycle fund. These funds will automatically set your asset allocation according to your age and rebalance it every year.