New Delhi, Aug. 25 -- The National Pension System (NPS) has traditionally allowed subscribers to invest up to 75% of their contributions in equities under the Active Choice option. From 2025, the Multiple Scheme Framework (MSF) changed this by allowing pension fund managers (PFMs) to introduce new schemes with 100% equity exposure.

So, what does 100% equity in NPS mean, how does it work, and should investors consider it?

Under the Multiple Scheme Framework, pension fund managers can launch high-risk schemes that invest up to 100% in equities. The earlier NPS structure, now referred to as common schemes, is still available, with equity exposure capped at 75%.

The 100% equity option is a scheme that a pension fund manager can offer, rath...