Archive · 25 Aug 2026
NPS 100% Equity Option: Rules, Benefits and Investor Considerations
The National Pension System now allows some new schemes to invest all their money in shares.
This does not mean every NPS investor must choose 100% shares.
Investors can still use older schemes where equity exposure is limited to 75%.
Under the new framework, eligible non-government subscribers can hold several schemes at the same time.
For example, they can combine an equity scheme with government securities or corporate bonds.
Equity may offer stronger growth over time, but its value can rise and fall sharply.
Younger investors may have more time to handle these changes, while people near retirement may prefer less risky investments.
Investors must choose how future contributions are divided because NPS will not automatically reduce equity exposure.
They should also compare fees and consider the 15-year or age-60 vesting rule.
The Multiple Scheme Framework allows NPS fund managers to introduce schemes with up to 100% equity exposure.
The earlier common schemes continue to cap equity investments at 75%.
Non-government subscribers can hold multiple schemes under one Permanent Retirement Account Number.
Investors should weigh market volatility, age, income, liabilities, dependents and existing equity investments.
MSF schemes may charge fees of up to 0.30% of assets under management, compared with about 0.09% for some common schemes.
- Who
- Pension fund managers and NPS subscribers, particularly non-government subscribers such as corporate employees and self-employed individuals.
- What
- The Multiple Scheme Framework permits NPS schemes offering up to 100% equity exposure and allows eligible subscribers to hold multiple schemes.
- When
- The framework changes took effect from 2025.
- Where
- Within the National Pension System framework.
- Why
- To provide greater investment flexibility and allow subscribers to match schemes with their risk tolerance, financial goals and stage of life.
- Maximum equity exposure
- Up to 100% under eligible Multiple Scheme Framework schemes; common schemes remain capped at 75%.
- Eligible multiple-scheme users
- Non-government subscribers, including corporate employees and self-employed individuals, can hold multiple schemes under one PRAN.
- Alternative allocations
- Subscribers can combine equity exposure with government securities or corporate bond schemes.
- MSF fee limit
- Multiple Scheme Framework schemes can charge fund management fees of up to 0.30% of assets under management.
- Common-scheme fee comparison
- Some common schemes charge around 0.09% of assets under management.
- Minimum vesting period
- MSF schemes have a minimum vesting period of 15 years or until the subscriber reaches age 60, whichever is earlier.
- Automatic de-risking
- NPS does not automatically reduce equity exposure as retirement approaches under MSF; subscribers must change future contribution allocations themselves.