Summary of this article
MSF offers 25 schemes across 10 pension funds, with a 15-year minimum vesting period.
MSF is only for non-government subscribers, such as self-employed, corporate employees, women, and entrepreneurs, among others.
Rapid growth in MSF subscribers and AUM shows demand for flexible pension plans.
The Multiple Scheme Framework (MSF) under the National Pension System (NPS) has received an encouraging response from subscribers. MSF was launched on October 1, 2025, and within four months of its launch, it has garnered assets under management (AUM) of close to Rs 150 crore. As on February 1, 2026, its AUM stood at Rs 145 crore. Over 150,000 subscribers have opened NPS accounts under MSF, which is different from the NPS common schemes, in terms of the vesting period.
According to data from the Pension Fund Regulatory and Development Authority (PFRDA), a total of 13 MSF schemes were launched by all 10 Pension Funds on October 1, 2025. The number has increased since then, and at present, there are a total of 25 MSF schemes for subscribers to invest their money.
The notable part is that MSF schemes are available only for non-government sector subscribers. Government sector subscribers are not eligible to invest in MSF schemes, as the vesting period is only 15 years. NPS MSF subscribers are allowed to either withdraw this money or convert it into common schemes after completion of 15 years.
To promote the scheme, PFRDA has initiated a New Enrolment Incentive (NEI) for the Pension Fund Managers, which offers an additional incentive of 0.10 per cent of AUM of new MSF accounts or existing NPS account who are opting to invest in one or more MSF schemes.
MSF offers more flexibility in the exit option. Unlike NPS common schemes, which permit normal exit at the age of 60 or at retirement, MSF comes with an exit option after a minimum vesting period of 15 years. This is one of the primary reasons that make it attractive for subscribers. However, if one wants to stay invested within the NPS infrastructure, PFRDA allows switching to other MSF schemes after 15 years. Switching to a common scheme is, however, allowed even within 15 years of the subscription period.
The growth in MSF subscribers and its AUM within a short span of four months shows the acceptance of MSF, which has been launched to offer diverse fund choices, theme-based, and strategy-oriented pension schemes.
Since the launch of MSF, Pension Funds have launched different schemes, ranging from equity-focused growth schemes, income-oriented strategies, and goal-based retirement solutions to balanced and dynamic asset allocation funds.
These schemes cater to different segments of the non-government sector, which includes self-employed, corporate employees, other salaried individuals, women, and entrepreneurs, among others.
