NPS Opens 100% Equity Schemes Under 2025 Framework, Lifting Old 75% Cap
Updated
Updated · Mint · Aug 25
NPS Opens 100% Equity Schemes Under 2025 Framework, Lifting Old 75% Cap
1 articles · Updated · Mint · Aug 25
Summary
From 2025, NPS pension fund managers can launch Multiple Scheme Framework options with up to 100% equity exposure, while the older common schemes remain available with a 75% equity ceiling.
MSF changes how investors use NPS by letting non-government subscribers hold multiple schemes under one PRAN, so contributions can be split across equity, government securities and corporate bond options.
A 100% equity allocation is optional rather than automatic, and investors must decide future contribution splits themselves instead of relying on NPS to reduce equity exposure near retirement.
Costs and lock-in differ from common schemes: MSF funds can charge up to 0.30% of AUM versus about 0.09% for some older schemes, and they carry a minimum vesting period of 15 years or until age 60.