The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new Equity investment facility under the Multiple Scheme Framework (MSF), effective from 1 October 2025. This reform allows eligible non-government subscribers of the National Pension System (NPS) to invest up to 100% of their contribution in equity, enhancing flexibility and in long-term wealth creation potential.
Key Features
- 100% Equity Allocation: Investors can now allocate their entire NPS contribution to equity under the MSF high-risk variant.
- Higher Growth Potential: Aimed at maximizing returns for long-term investors through full equity exposure.
- Applicable for Non-Government Sector: Designed for private sector employees, professionals, and self-employed individuals.
- Multiple Risk Variants: Subscribers can choose between moderate and high-risk options as per comfort level.
- Long-Term Vesting: The investment under MSF is subject to a 15-year vesting period or until retirement.
- Enhanced Flexibility: Subscribers can tailor portfolios based on risk appetite and financial goals.
- Professional Fund Management: Managed by licensed Pension Fund Managers (PFMs) for efficient portfolio diversification.
Conclusion
The introduction of the MSF with a 100% equity option is a bold and progressive move by PFRDA. It empowers NPS subscribers to design portfolios that match their financial goals and risk tolerance. While equity exposure offers strong growth potential, investors should remain mindful of market volatility and maintain a long-term perspective for optimal benefits.
FAQs
1. What is the MSF in NPS?
Ans: It stands for Multiple Scheme Framework, allowing subscribers to choose among different investment variants, including one with 100% equity exposure.
2. When will the 100% equity option start?
Ans: The facility will be available from 1 October 2025.
3. Is 100% equity investment compulsory?
Ans: No. It is optional—subscribers can select the equity percentage as per their risk appetite.
4. What is the risk level of this option?
Ans: It is classified as High Risk, suitable for investors with a long-term horizon and tolerance for market fluctuations.
5. Who should opt for it?
Ans: Ideal for young and growth-oriented investors seeking higher returns through equity markets within NPS.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
