On 01 October 2025, the National Pension System (NPS) has received a significant upgrade with the introduction of the Multiple Scheme Framework (MSF) for subscribers. Under this new NPS rule, private sector employees, corporate employees and self-employed individuals will have a choice to invest up to 100% in equity, far beyond the existing 75% cap. This change makes NPS more flexible and investor-centric.
If you’ve ever wondered what is NPS and how it supports your retirement planning, this latest update makes the scheme even more attractive for long-term wealth creation.
What is the Multiple Scheme Framework (MSF)?
The Multiple Scheme Framework is a structure under which each Pension Fund Manager (PFM) can offer multiple individual schemes within different asset class – Equity, Corporate Debt, Government Securities, etc.
- Under MSF, a PFM can offer multiple NPS schemes tailored for different subscriber profiles for example Aggressive, Balanced and Moderate schemes.
- The objective is to give subscribers greater choice, transparency, and alignment with their risk profile, while retaining the regulatory safeguards of NPS.
Key Features of MSF
Below are some of the standout features of MSF under the new NPS rule:
- Diverse Investment Strategies: PFMs can define strategies (e.g. moderate, conservative) for each scheme under equity, debt & other asset classes.
- Transparency: Each scheme will have its own disclosure, benchmark, and NAV, so tracking performance becomes easier.
- Applicability to Both Tiers: MSF will operate in both Tier I and Tier II accounts, broadening choice.
- Professional Fund Management: Even though multiple schemes come from the same PFM, you enjoy a range of approaches without switching PFMs.
- Increased Flexibility: You can select among multiple schemes within the same asset class based on your own risk appetite. NPS also continues to offer tax deductions under Sections 80CCD(1), 80CCD(1B), and 80CCD(2) for individual and employer contributions.
Upto 100% Equity in NPS is Allowed under Multiple Scheme Framework (MSF)
From 1st October 2025, subscribers can now opt for 100% equity exposure in schemes created under MSF. This removes the prior cap of 75% equity in NPS across Common Schemes.
Former Scenario
Before MSF, NPS allowed a maximum of 75% equity and 25% in debt instruments. The additional flexibility of 100% equity is a transformative shift.
Eligibility
Eligible individuals include private sector employees, corporate plan participants, and self-employed professionals.
How Will MSF Work After This Change?
Multiple Schemes per Asset Class
Under MSF, each PFM can have multiple schemes as per different asset class.
Subscriber Flexibility
You can pick schemes from a single PFM or across multiple PFMs.
Scheme Switching
- During the vesting period (first 15 years): Switching of legacy fund is permitted only to Common Schemes. However, the same is not applicable between MSF schemes.
- After 15 years or at normal exit: Subscribers can switch legacy fund freely between MSF schemes.
What These Changes Mean for You
With MSF and the 100% equity option, NPS now delivers:
- Greater Flexibility and Choice — Tailor your portfolio more precisely across equity and debt.
- Higher Growth Potential — For long-term investors, more equity exposure can enhance returns.
- Professional Diversification — Just like other funds, but with the pension orientation and regulatory safeguards of NPS.
If you’re exploring the Types of NPS account, these changes make both Tier I and Tier II options far more attractive for personalized retirement planning.
HDFC Pension’s New Offerings Under MSF
HDFC Pension has launched customized schemes under the Multiple Scheme Framework (MSF), designed to meet the diverse financial goals of India’s evolving workforce.
?HDFC PF NPS Surakshit Income Fund (Tier I & II)
This scheme is built for investors who value stability, steady growth, and diversified investments.
It offers a balanced approach by investing across multiple asset classes, helping mitigate risk while aiming for consistent returns.
Key Benefits:
- Diversified portfolio for risk-balanced growth
- Tax benefits under Sections 80CCD(1), 80CCD(1B), and 80CCD(2) (applicable in Tier I only)
- Available in both Tier I and Tier II accounts
Whether you’re planning for long-term goals or short-term milestones, HDFC PF NPS Surakshit Income Fund offers a dependable path to retirement. Click here to know more about this plan
?HDFC PF NPS Equity Advantage Fund (Tier I)
This scheme is tailored for investors seeking higher exposure to equity and a long investment horizon.
It allows up to 100% equity exposure, making it ideal for those aiming to maximize their retirement corpus through market-linked growth.
Key Benefits:
- Full equity potential under MSF
- Designed for long-term wealth creation
- Tax-efficient growth
Equity Advantage Fund empowers investors to harness the full potential of equity markets while benefiting from the regulatory safeguards of NPS. Click here to know more about this plan
A Massive Evolution in NPS
Now is a good time to review your NPS portfolio. Open NPS Account Online (or revisit your existing account) to explore the new MSF schemes from HDFC Pension to build a retirement strategy that suits your goals and risk appetite.
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