New Delhi, Sept. 29 -- Come 1 October, a reformed National Pension System (NPS) will be put in place to eliminate some of its current rigidity. For one, non-government-employee subscribers will now have an option to invest their money fully in equities; they can decide whether they prefer their hard-earned savings to be parked in debt instruments or equity, or a mix of both, rather than have stiff rules dictate their asset allocation.

Further, pension fund managers will now have the freedom to customize this nest egg for the needs of various segments of investors. Those near retirement, for instance, may be offered debt-heavy portfolio plans to keep their principal safe, while early-stage investors may opt for equity-heavy plans to maxim...