Go for 100% equity if risk appetite, investment horizon permit

Choose prudently as switching between MSF schemes is not permitted for 15 years

- HIMALI PATEL

On October 1, observed as NPS Diwas, the Pension Fund Regulatory and Development Authority (PFRDA) launched the Multiple Scheme Framework (MSF).

It enables non-government sector subscribers of the National Pension System (NPS) to hold multiple schemes under a single permanent retirement account number (PRAN) across different central record-keeping agencies (CRAs).

More choice

Earlier, NPS investors could allocate money in Tier -I (retirement) and Tier-II (savings) accounts across equity (E), corporate bonds (C), government securities (G), and alternate investments (A), through either the active choice (self-managed) or auto choice (age-based) asset allocation options.

With MSF, subscribers can invest in multiple schemes managed by different fund managers. "Pension fund managers (PFMs) can now offer new fund options beyond the existing E, G, C, and A schemes," says Kurian Jose, chief executive officer (CEO), Tata Pension Management.