Great news for non-government National Pension System (NPS) subscribers aged 18 and above! As of October 1st, 2025, you can now allocate up to a whopping 100% of your NPS funds into equities. This marks a significant shift from the previous maximum of 75% equity and comes with the introduction of new tailored schemes under the Multiple Schemes Framework (MSF). This enhancement empowers eligible investors to pursue a more aggressive growth strategy within their pension corpus, allowing them to potentially maximize returns over the long term.
While this opens up significant growth opportunities, it's crucial to understand that not everyone is eligible for these new 100% equity schemes. Specifically, NPS Vatsalya accounts (designed for children under 18) and government employees are currently excluded. The rationale behind the exclusion for NPS Vatsalya primarily stems from its inherent structure: there’s no provision for premature exit as funds are locked until the child turns 18, whereas the new MSF schemes often come with a 15-year vesting period and are designed for subscribers aged 18 and above.
For eligible investors, especially younger individuals with a long investment horizon, a 100% equity allocation in NPS can be a powerful tool for wealth creation, allowing them to harness the full potential of market growth. And for parents investing in NPS Vatsalya, there's a clear path forward: once your child reaches the age of 18, they can seamlessly transition their account to Tier I and then opt for these aggressive equity options, setting them up for a financially robust future. This update truly underscores NPS's evolving role as a flexible and potent long-term investment vehicle.
