How to invest in NPS 100% equity option under the multiple scheme framework

MSF under NPS allows investors more choice and personalisation. It offers multiple new schemes that are tailored for different life goals and risk appetites.

"The introduction of MSF envisages a pension system offering multiple choices, transparency, and efficiency. By bringing this framework into operation, the Authority is ensuring that innovation in pension design is balanced by strong safeguards for subscribers," PFRDA had said while announcing MSF under NPS.

However, 100% equity allocation under MSF is allowed only for new contributions. You cannot move your existing NPS contribution to MSF. But you can move back to regular schemes if you later don't like the MSF.

Further, there is a lock-in of 15 years or 60 years of age, whichever is earlier.

Under MSF, pension fund managers have recently launched several new schemes. Some of them allow up to 100% equity allocation.

For instance, DSP Mutual Fund has launched a Long-Term Equity Fund that allows up to 100% equity investment. Similarly, Kotak Mahindra Pension Fund has launched Kotak PF NPS Kuber Equity Fund that allows 80%-100% equity allocation.

Here are the steps you can follow to opt for 100% equity allocation under NPS MSF.

Under MSF, there are multiple schemes tailored to various needs. You can choose the high-risk scheme for 100% equity allocation if this is what you want to do.

However, before opting for 100% equity allocation, you should be sure that it is suitable for your life goals and you have the desired risk appetite as this is a very high risk strategy.

MSF benefits for subscribers

With MSF, NPS subscribers get more choice and personalisation. They can use this option to balance conservative and aggressive strategies within the same PRAN, or opt for a fully aggressive strategy with 100% equity allocation, to plan for different life stages.

Under MSF, pension funds have started offering tailored schemes along with the added transparency and low-cost benefit of NPS.