Personal Finance News
3 min read | Updated on October 09, 2025, 10:37 IST
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.
The two main NPS investment options auto and active choice, will now be known as Common Schemes (CS). | Image: Shutterstock
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.
“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,
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
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
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
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
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).
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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