PFRDA circular PFRDA/2026/47/REG-PF/10 · 28 Aug 2026
Official title
Standardised framework for classification and presentation of Schemes under the NPS
Summary
Check the official recordThe PFRDA establishes a uniform framework for the classification, presentation, and disclosure of National Pension System investment schemes. This circular categorizes schemes into Lifecycle-based, Active Choice, NPS Sanchay, Multiple Scheme Framework, and 4A Schemes. It mandates a standardized naming convention for Multiple Scheme Framework schemes and prescribes a specific sequence for presenting scheme information on subscriber-facing platforms. Subscribers may hold multiple Multiple Scheme Framework schemes but only one Lifecycle or Active Choice scheme at a time. The circular limits changes of Pension Fund or investment scheme to two requests per account per financial year. These provisions apply to all NPS stakeholders except those with accounts tagged to the Government sector. Pension Funds must adopt these standards to improve comparability and facilitate informed subscriber decisions.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
If you do not comply
CIRCULAR
PFRDA/2026/47/REG-PF/10
28.08.2026
To
All NPS Stakeholders
Subject: Standardised framework for classification and presentation of Schemes under the NPS
In exercise of the powers conferred under the PFRD Act, 2013, the regulations made thereunder and other enabling provisions, the Authority hereby issues this Circular prescribing the framework governing the classification, presentation, operation and disclosure of investment schemes $^{[1]}$ under the NPS.
This Circular seeks to establish a standardised framework for classification and presentation of investment schemes, facilitate informed investment decisions by subscribers, promote comparability of schemes offered by different Pension Funds and prescribe uniform requirements relating to scheme naming, subscriber journeys, disclosures and implementation.
Classification Framework
1. Classification of Investment Schemes
1.1 All schemes under NPS shall be classified in accordance with the framework specified in this Circular. The said classification framework shall be adopted uniformly across all subscriber-facing interfaces:
| No | Type of Scheme | Description |
|---|---|---|
| 1. | Lifecycle based Schemes | Comprises existing lifecycle variants (Life Cycle Aggressive, Life Cycle 75 - High, Life Cycle 50 – Moderate and Life Cycle 25 – Low). |
Under this category, the asset allocation among E, C and G Scheme gets auto-adjusted as per the age of the subscriber as per the age-asset allocation matrix approved by PFRDA. | | 2. | Active Choice | Subscriber directed allocation across asset classes E, C and G | | 3. | NPS Sanchay | Comprises scheme for the informal sector with a pre-defined investment pattern aligned with the investment pattern applicable to the Government Sector under NPS. | | 4. | MSF | Comprises investment schemes launched by Pension Funds with the approval of the Authority. These schemes shall be classified into standardised categories based on the equity allocation mandate in accordance with Paragraph 2 of this Circular. All schemes launched till date under the Multiple Scheme Framework shall henceforth be categorised under this. | | Applicable Annual charges for these schemes range from 0.24% to 0.32% of AUM depending on the choice of Pension Fund; Refer Annexure A | | 5. | 4A Schemes
(Curated / Thematic Schemes) | Schemes introduced under Regulation 4A of the Exit Regulations like NPS Vatsalya, NPS Swasthya, NPS MSME.
Asset allocation, charges and other terms and conditions for the 4A schemes shall be as specified under respective guidelines/ circulars. |
2. Scheme Types
2.1 Lifecycle-based Schemes
The equity allocation shall follow a pre-determined age-linked glide path as specified in the prescribed asset allocation matrix.
| Lifecycle Category | Maximum Equity Exposure | Equity Allocation over Age |
|---|---|---|
| Life Cycle - Aggressive (35E/55Y) | 50% | 50% till 45 years → 35% by 55 years |
| Life Cycle 75 – High (15E/55Y) | 75% | 75% till 35 years → 15% by 55 years |
| Life Cycle 50 – Moderate (10E/55Y) | 50% | 50% till 35 years → 10% by 55 years |
| Life Cycle 25 – Low (5E/55Y) | 25% | 25% till 35 years → 5% by 55 years |
2.2 Active Choice
Under the Active Choice, the subscriber shall have the flexibility to determine the allocation of contributions among the available asset classes, subject to the limits specified by the Authority.
| Asset Class | Maximum Permissible Allocation |
|---|---|
| Equity & related instruments (E) | 75%* |
| Corporate Bonds (C) | 100% |
| Government Securities (G) | 100% |
*100% under Tier II
2.3 NPS Sanchay
This is a composite scheme where the investment pattern is aligned with the extant Investment Guidelines applicable to Government Sector schemes, with maximum permissible asset allocation as under –
| Asset Class | Maximum Permissible Allocation |
|---|---|
| Equity & related instruments (E) | 25% |
| Corporate Bonds (C) | 45% |
| Government Securities (G) | 65% |
| Short term debt instruments | 10% |
| Asset Backed, Trust Structured and Miscellaneous Investments | 5% |
2.4 MSF Scheme Categories
a. Every MSF scheme shall be classified into one of the following categories based on its equity allocation mandate.
| Category | Equity Exposure | Category Code |
|---|---|---|
| Aggressive Growth – Very High Risk | 80%–100% | A |
| High Growth – High Risk | 60%–80% | B |
| Balanced Growth – Medium Risk | 35%–60% | C |
| Conservative | 10% - 35% | D |
| Debt (Govt./ Corporate Bonds) | 0-10% | E |
b. Every MSF Scheme shall have an equity exposure mandate corresponding to any one category.
c. A Pension Fund can voluntarily offer up to 2 schemes under each category under each Tier.
3. Naming Convention
3.1 Every MSF Scheme offered by a Pension Fund shall adopt a uniform naming convention to facilitate easy identification and comparability across Pension Funds.
3.2 The name of every MSF Scheme shall follow the naming convention as under:
Abbreviation of Pension Fund Name + “NPS” + MSF Category Code + Scheme Name
Schemes pertaining to Tier 2 shall mention Tier 2 at the end of the scheme name.
Illustratively:
3.3 Every scheme name shall clearly indicate the applicable Category code prescribed under this Circular. Pension Funds shall prominently disclose the relative equity exposure hierarchy, with Category A representing the highest and Category E the lowest equity exposure.
4. Scheme Selection Framework
4.1 To facilitate informed investment decisions, all subscriber-facing interfaces, including CRA platforms and other onboarding channels shall uniformly adopt the following sequence for presentation and selection of investment schemes.
a. Type of Scheme (MSF/Lifecycle based/ Active choice/ NPS Sanchay/ 4A)
b. Category of the MSF Scheme/Lifecycle funds/ Asset allocation in case of Active choice
c. Selection of the Pension Fund
Prior to selection of a Pension Fund, all schemes being offered by the various Pension Funds under the selected category shall be displayed along with the following minimum information $^{[2]}$ in such a way that the subscriber is able to compare amongst the various schemes:
a. Scheme Name; b. Pension Fund Name; c. Date of Launch d. Historical Returns; e. Benchmark & comparative benchmark returns; f. Applicable Charges; g. Riskometer; h. Assets under Management (AUM) as on the last day of the previous month; and i. Such other information as may be specified by the Authority from time to time.
The subscriber shall thereafter select the Pension Fund and the corresponding Scheme.
Where the subscriber selects 4A Schemes, the available schemes approved by the Authority shall be displayed.
4.2 Platforms owned and operated by PoPs may, for the purpose of onboarding subscribers, display the Schemes offered by the Pension Fund(s) associated with such PoP.
5. Change of Scheme and/or Pension Fund
5.1 A PRAN is unique to a CRA and a subscriber may have multiple Schemes under the same PRAN.
5.2 A subscriber shall be permitted to hold only one scheme among Lifecycle-based Scheme or Active Choice at a time under the same PRAN.
5.3 A subscriber may simultaneously hold investments in more than one MSF Scheme.
5.4 A subscriber can submit a maximum of two requests per Account $^{[3]}$ for change of Pension Fund, Investment Scheme or any combination of the two. A request involving any of the above changes at a time shall be treated as one request for the purpose of determining the limit for each FY.
5.5 The subscriber may opt to change, from one Scheme to another, amongst the MSF, Lifecycle, Active and Sanchay Schemes subject to the provisions specified above. Such change of Scheme shall not affect the vesting period or any other applicable conditions governing the Account, which shall continue to be reckoned from the original date of opening of the Account
5.6 In respect of accounts held with corporate employers, the facility for change of Scheme shall be available only to the extent permitted under Circular No. PFRDA/2025/20/PDES/03 dated 7th November 2025. Any change of Scheme permitted thereunder shall be allowed in accordance with the provisions of this Circular.
