Switch mode
Move between Active and Auto Choice — up to 4 times a year.
About NPS
Investment Choices
How your NPS money is invested — the asset classes, the two ways to allocate, the fund managers, and how freely you can change it all.
Where it’s invested
The NPS asset classes
Your contributions are spread across the NPS asset classes. Tap a card to learn more.
Read more — the caps and role of each asset class
What matters is not the labels but the mix — how much sits in E, C and G together sets your overall risk and expected return.
How it works in practice
- You never buy shares or bonds directly — contributions buy units whose value (the NAV) moves with these markets
- A larger G share steadies the corpus but lowers long-run growth; more E does the opposite
- The right balance depends mainly on your years to retirement and your comfort with swings
Why equity is capped
Pension money should not be over-exposed to market falls, so equity is held to 75% and its ceiling tapers as you age — capping the downside as retirement nears. Since December 2025 the old Alternatives sleeve no longer stands apart; that exposure now sits inside Schemes C and E.
Two ways to allocate
Active Choice vs Auto Choice
Decide the split yourself, or let a lifecycle fund manage it by age.
You decide
Active Choice
Set your own allocation across the asset classes and adjust it as your view changes.
- Choose your own E / C / G split
- Equity capped at 75% (tapers with age)
- Rebalance across E, C and G as your view changes
- Best for hands-on, informed investors
Set & forget
Auto Choice
A lifecycle fund automatically shifts from equity toward debt as you get older.
- Aggressive (LC75) — up to 75% equity
- Moderate (LC50) — up to 50% equity
- Conservative (LC25) — up to 25% equity
- Rebalances automatically by age
Which one? Pick Auto Choice for a hands-off, age-based glide path; choose Active Choice if you want to control the mix yourself.
Read more — the three Auto Choice lifecycle funds
Under Auto Choice, a lifecycle fund holds a set equity level until age 35, then automatically trims equity each year so the portfolio grows more conservative as retirement approaches.
The three glide paths
- LC75 (Aggressive) — up to 75% equity to 35, then −4% a year
- LC50 (Moderate) — the default; up to 50% to 35, then −2% a year
- LC25 (Conservative) — up to 25% to 35, then −1% a year
- The balance sits in government and corporate bonds
Active Choice, by contrast, lets you set the E / C / G split yourself within the same caps — better suited to hands-on, informed investors.
More granular control
Multiple Scheme Framework
A newer PFRDA framework that lets you hold several NPS schemes — across up to three pension fund managers, with higher equity on offer. Tap for detail.
Read more — the Multiple Scheme Framework
The Multiple Scheme Framework (MSF) lets a subscriber hold several NPS schemes at once, spread across schemes from up to three Pension Fund Managers, instead of a single default with one PFM — with the option of much higher equity.
What it changes
- Hold multiple schemes across up to 3 PFMs
- Equity allocation up to 100% (vs the usual 75% cap)
- A modestly higher fee than standard schemes (MSF cap 0.30% of AUM)
- Choose and rebalance with finer control
Who can invest in MSF
MSF is an opt-in choice for Tier I subscribers in the private-sector models — the All Citizen and Corporate models. Government-sector NPS is not covered. It suits subscribers who want a more active, customised allocation and are comfortable with higher equity and a slightly higher cost. Exact eligibility follows the prevailing PFRDA circular.
Who manages the money
Pension Fund selection
You choose a PFRDA-registered Pension Fund Manager (PFM) to invest your contributions. Each PFM runs the same regulated asset classes, so you can compare them and pick the one that suits you.
1
Compare
Review PFMs on long-term performance and consistency.
2
Choose
Select one PFM for your account while opening or later.
3
Stay invested
Your money is managed under PFRDA oversight and low charges.
4
Review
Re-check periodically — past returns are not a guarantee.
Read more — how Pension Fund Managers are chosen and overseen
Choosing a PFM decides who manages your money — not what it is invested in. Your asset-class mix and the caps stay the same whichever PFM you pick, so the choice is about the manager, not the strategy.
What the regulation gives you
- Every PFM is PFRDA-registered and may invest only within the regulated asset classes and caps
- Holdings are recorded as units and valued at the daily NAV, so performance is transparent
- Management charges are regulated and among the lowest of any investment product
Picking and switching
Standard NPS runs one PFM per account, which you can change once a financial year (the Multiple Scheme Framework lets you spread across up to three). Judge managers on consistency across market cycles rather than a single strong year — and note that switching PFM moves management of the same corpus, so it is not a taxable event.
Staying flexible
Changing your choice or fund manager
NPS lets you adjust your investments within the limits set by PFRDA.
Re-allocate
Change your E, C and G split — within the same 4 changes a year.
Change PFM
Switch your Pension Fund Manager — once a financial year.
Within limits
Scheme choice up to 4 times a year; PFM once a year.
Online
Done through eNPS or the CRA portal.
The number of permitted changes and the exact process follow the prevailing PFRDA rules and should be verified before switching.
Read more — what you can change, and how often
Here is what actually happens when you change your investment choice or fund manager — and the fine print the cards above don’t show.
How often you can change (Tier I)
- Investment choice — switching between Active and Auto Choice and re-allocating across E, C and G together count as up to 4 changes per financial year
- Pension Fund Manager — can be changed once per financial year
- Tier II is more flexible, with fewer restrictions than Tier I
Good to know
- Switching schemes or PFM inside NPS is not a taxable event — no tax and no exit load on an internal change
- Your PRAN, contributions and corpus stay intact — only the allocation or fund manager changes
- A change is processed at the applicable NAV and takes a few working days to reflect in your account
Exact limits follow the prevailing PFRDA rules — confirm the current position before switching.
Good to know
Common questions
Tap a question to read more.
What’s the maximum equity allocation, and does it change with age?
Equity (E) is capped at 75% of the portfolio. Under Auto Choice it tapers down automatically as you get older; under Active Choice the ceiling also steps down in later years, protecting the corpus as retirement approaches.
How should I choose between Active and Auto Choice?
Pick Auto for a hands-off, age-based glide path that rebalances for you; pick Active if you want to set and adjust the E / C / G mix yourself. Auto suits most subscribers; Active suits confident, engaged investors.
How are returns actually generated?
Your contributions buy units in the schemes you choose; their value (the NAV) moves with the underlying equity, bond and government-security markets. That’s why two subscribers who contribute the same amount can end up with different corpuses.
How often can I change my allocation or fund manager?
NPS allows a limited number of changes to your investment choice, asset allocation and Pension Fund Manager each year, done online. The exact limits follow the prevailing PFRDA rules.
How much does past performance matter when picking a fund manager?
It’s a guide, not a guarantee. Compare managers on long-term, consistent performance across market cycles rather than a single strong year, and remember all PFMs operate under the same regulated, low-cost framework.