NPS rule change: Default option available in NPS Tier II accounts for govt employees; what is it and how will it help you?

The new NPS rule allows government employees to opt for a default investment scheme in their NPS Tier II accounts, eliminating the need to manually select pension fund managers or asset allocation. Under this default option, contributions are automatically split among three major pension fund managers and invested 85% in fixed income and 15% in equity, providing a simplified, convenient way to invest for various financial goals. This move offers flexibility, ease of use, and ensures that even passive investors can benefit from professional fund management without active decision-making. Existing investment choices in Tier II remain available alongside this new default option.