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  1. National Pension System (NPS) auto choice funds renamed: What subscribers should know

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National Pension System (NPS) auto choice funds renamed: What subscribers should know

Upstox

3 min read | Updated on October 09, 2025, 10:37 IST

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SUMMARY

To make it easier for subscribers to understand the investment options under NPS, the Pension Fund Regulatory and Development Authority (PFRDA) has also updated and renamed some of its existing fund options.

NPS auto choice funds

The two main NPS investment options auto and active choice, will now be known as Common Schemes (CS). | Image: Shutterstock

The Pension Fund Regulatory and Development Authority (PFRDA) has recently introduced a series of updates to the National Pension System (NPS) to enhance its appeal and flexibility for a diverse range of investors.
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These include the launch of the Multiple Scheme Framework (MSF), proposed changes to the exit and withdrawal rules, and a draft suggesting the introduction of three different pension payout options.

To make it easier for subscribers to understand the investment options under NPS, PFRDA has also updated and renamed some of its existing fund options.

Why this change?
PFRDA noticed that the Balanced Life Cycle Fund (BLC) actually had more equity exposure at ages 45 and 55 compared to the LC 75 Fund, even though LC 75 was considered more aggressive. This was confusing.

“The Balanced Life Cycle Fund (BLC) had a higher equity allocation at the ages of 45 and 55 years as compared to the LC 75 Fund, which is currently categorised as an Aggressive investment pattern. To address this inconsistency and enhance clarity for subscribers, PFRDA has decided to revise and rationalise the nomenclature of the Life Cycle Funds so that the names accurately reflect their risk–return profiles and equity allocation patterns,” PFRDA noted in its latest notification,

What’s changed?

Balanced Life Cycle Fund (BLC) is now officially included under auto choice. The names of all Life Cycle Funds have been updated to match their investment style and risk levels.

Details of the four investment options under auto choice and the proposed change in names

1) LC 25 (Conservative Life Cycle Fund)

Renamed to: Life Cycle 25 – Low (5E / 55Y)

What it means:

Life Cycle 25: Equity exposure up to 25% until age 35

Low: Indicates low equity exposure, suitable for risk-averse investors

5E / 55Y: Equity drops to a maximum of 5% by age 55 and beyond

Ideal for: Preserving savings with steady and low-risk growth

2)LC 50 (Moderate Life Cycle Fund)

Renamed to: Life Cycle 50 – Moderate (10E / 55Y)

What it means

Life Cycle 50: Equity exposure up to 50% until age 35

Moderate: Indicates moderate equity exposure

10E / 55Y: Equity reduces to 10% by age 55 and beyond

Ideal for: Investors seeking a balanced approach between growth and capital protection

3) LC 75 (Aggressive Life Cycle Fund)

Renamed to: Life Cycle 75 – High (15E / 55Y)

What it means:

Life Cycle 75: Equity exposure up to 75% until age 35

High: Indicates high equity exposure

15E / 55Y: Equity exposure drops to 15% by age 55 and beyond

Ideal for: Those aiming for higher growth through more equity exposure in early years

4) Balanced Life Cycle Fund (BLC)

Renamed to: Life Cycle – Aggressive (35E / 55Y)

What it means

Aggressive: Reflects the fund’s higher long-term equity exposure

Equity is up to 50% until age 45

35E / 55Y: Equity stays relatively high at 35% even at age 55 and above

Ideal for: Investors seeking long-term wealth creation with significantly higher equity over time

The two main NPS investment options auto and active choice, will now be known as Common Schemes (CS).

What is the Multiple Scheme Framework (MSF)?
Under the MSF, NPS subscribers will now have the flexibility to invest:

In multiple schemes from one or more pension fund managers across different Common Schemes using their PRAN (Permanent Retirement Account Number)

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