Corporate National Pension Scheme (NPS)

The Non-Government Sector (NGS) under the National Pension System (NPS) has steadily evolved into a strong and growing part of India’s retirement planning landscape. It reflects how more people outside government jobs—such as corporate employees, professionals, self-employed individuals, and those working in the platform or digital economy—are showing trust in NPS as a reliable way to build financial security for their future.

Encouraged by the steady progress so far, there is now a focus on tapping into the much larger potential this sector holds. To support this, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new initiative called the Multiple Scheme Framework (MSF). This move is aimed at strengthening the overall pension ecosystem in the country by offering NPS subscribers’ greater freedom and more options when it comes to planning for retirement.

The MSF has been launched under the provisions of the PFRDA Act, which allows subscribers to access more than one scheme within the NPS. The goal is to provide more flexibility and a wider range of choices, so that individuals can align their pension investments more closely with their personal financial goals. This approach also brings India’s pension framework closer to global standards, making it more modern and responsive to the diverse needs of today’s workforce.

Overall, this marks an important step forward in making the NPS more inclusive, adaptable, and appealing—especially for those outside the traditional government sector.

Key features:

Transparency: With MSF, each scheme is managed and reported separately, making performance tracking much more straightforward. Subscriber can view scheme-specific disclosures, benchmarks, and Net Asset Values (NAVs), which improves transparency and decision-making.
Flexibility under the NPS Tier account: Another important aspect of the framework is its applicability to Tier I and Tier II accounts (soon to be launched), enabling broader participation and choice across different types of NPS accounts. The ability to access multiple investment strategies under a single PFM, without the need to switch fund managers. This makes portfolio management simpler while still offering diverse options.
Tax benefits: The NPS continues to offer tax benefits under existing provisions, including deductions under Sections 80CCD(1), 80CCD(1B), and 80CCD(2), making it a compelling choice for both individuals and employers aiming to build a robust retirement plan.

Overall, the MSF significantly increases the scope for customization in NPS, while continuing to offer tax benefits under Sections 80CCD(1), 80CCD(1B), and 80CCD(2) for both individual and employer contributions. It’s a step forward in making pension planning more aligned with individual needs and global best practices.
MSF Offerring from Aditya Birla Sun Pension Fund Mgt. Ltd highlights : Built on the strength of India’s top 200 companies — and actively managed to outperform them.

This 50:50 Hybrid Index represents the retirement mindset — grow with equity, stay grounded with debt. The fund’s goal is not only to mirror this balance but outperform it through tactical shifts.
Eligibility criteria : Indian citizens between the age bracket of 18 - 70 years. Eligible participants under the Multiple Scheme Framework include private sector employees, corporate NPS subscribers, and self-employed professionals, offering them greater flexibility and control over their retirement investments.
Switching Provisions (within the scheme): During the vesting period, the subscribers are permitted to switch from a scheme launched under this framework to the Common Schemes. The Subscribers who invest in schemes of Pension Funds can move their funds across the schemes upon completion of vesting period of 15 years or upon time of normal exit as defined by Exit Regulations of PFRDA.
Low-Cost Advantage : Charges capped at 0.30% AUM inclusive of PoP & PFM charges.

Can be considered by :

Profile	Age	Typical investment need / life stage
Early & Mid-Career Professionals & Long-term Investors	18–45	Seeking growth, wealth building & early retirement planning along with tax savings, comfortable with volatility over the fund lifecycle
Senior Professionals & Long-term Investors	45–60	Seeking to build a retirement corpus during senior / late career, or already invested in debt through PF, FD, etc. traditional debt tools

Investment Approach :

Core Element	Strategy	Investor Benefit
Bottom-Up Stock Selection	Focus on fundamentals & earnings growth	Higher long-term conviction
Active Management	Overweight outperformers, avoid laggards	Potential to beat index

Asset Allocation Strategy :

Asset Class	Min	Max	Objective
Equity (Top 200)	90%	100%	Core long-term growth
Debt & Money Market**	0%	10%	Stability & liquidity cushion
REITs	0%	5%	Optional diversification

Why the Top 200 Stock Universe / BSE 200 Benchmark is Best for Your Retirement Equity Fund
	. Wide diversification across India’s most credible large & mid-cap companies
	. Lower volatility than pure midcap/smallcap indices
	. Higher long-term return consistency than concentrated indices (Sensex/Nifty50)

Superior Risk-Return Score — Simplified

Index	Return Potential	Volatility	Risk-Return Efficiency Score*
BSE 200	High	Moderate	1.36 (3Y) / 1.98 (5Y) / 3.98 (10Y) Highest Risk Reward Scores
Sensex	Moderate	Low	Slightly lesser scores due to limited upside capture (returns)
BSE Midcap	High	High	Lower scores due to higher volatility
BSE Smallcap	Very High	Very High	Lower scores due to higher volatility
BSE 200 has historically offered “more return per unit of risk” than any other broad market index over 3Y, 5Y and 10Y periods

Return Based on Historical Index Performance:

Time Horizon	Sensex	BSE 200 (Fund Benchmark)	BSE Midcap	BSE Smallcap	Debt
3 Year	11.8%	14.1%	21.8%	22.4%	8.4%
5 Year	16.1%	18.5%	25.0%	28.6%	6.7%
10 Year	11.9%	12.8%	15.3%	16.8%	8.1%


	. BSE 200 has historically delivered stronger returns than Sensex, while avoiding the extreme volatility of Midcap/Small cap indices.
	. Debt returns stay stagnant around 7–8%, barely above inflation.
	. Long-term equity allocation is essential for retirement wealth — and BSE 200 offers a balanced and attractive risk-reward profile.

ABSLPF Secure Future Fund – NPS (Tier 1)

Designed to Grow in Upside. Built to Stay Steady in Downside. It’s a dynamically managed hybrid strategy that aims to deliver long-term equity-like growth with controlled volatility. It is meant for investors who want consistent compounding without taking aggressive market risk

Asset Allocation Strategy (Core Framework)

Asset Class	Minimum	Maximum	Role in Portfolio
Equity (Top 200 Universe*)	40%	65%	Participate in market growth
Debt (Government + Corporate Bonds)	35%	60%	Cushion volatility and ensure steady accrual
REITs (if permitted)	0%	5%	Tactical diversification


	The fund has the flexibility to increase equity up to 65% in favourable market phases and reduce it to 40% when risk surfaces, allowing dynamic participation and disciplined defence.

Investment Universe & Benchmark

Benchmark Component	Allocation
BSE 200 Index (Equity)	50%
NPS Government Securities Index	25%
NPS Corporate Bond Index	25%

Rolling Return Performance (Historical Consistency)

Rolling CAGR	Sensex	BSE 200	Debt	Hybrid 50:50 Model
3 Year	12.1%	13.0%	~8.8%	10.8%
5 Year	11.8%	12.7%	~9.0%	10.8%
10 Year	11.7%	12.6%	~8.9%	10.7%


	Observation: Hybrid strategies stay close to equity returns, while eliminating the emotional swings that often derail investment discipline.

Key lessons to keep in mind from historic data of Hybrid 50:50 Benchmark
	. You don’t need to be 100% in equity to grow wealth. Maintaining even 50–60% equity exposure delivers strong returns when coupled with steady debt earnings.
	. Protection against big drawdowns is not just risk control — it is compounding protection. A smaller fall recovers faster.
	. Most investors fear crashes, but long sideways markets are worse. Hybrid strategies can keep compounding when equity goes nowhere, reducing regret and increasing commitment.

Case Study: 2010–2016 – When Equity Struggled, Hybrid Quietly Won
From 2010 to 2016:

Asset Type	Return (CAGR) during 2010 – 2016	Investor Experience
Equity (Sensex / BSE200)	~5–7%	Volatile but stagnant — investors felt “stuck”
Hybrid 50:50 Model	~10–11%	Slow and steady compounding — no stress, no surprises


	Why this matters today:
	Most investors assume only market crashes hurt wealth. But years of low or flat equity returns are even more damaging — they drain patience, not money.
	Hybrid solves that problem. It lets debt keep working quietly in the background, ensuring that even in boring markets, portfolios grow meaningfully.

Who Should Invest?

Investor Profile	Typical Mindset	Core Need	Why This Fund Fits
Conservative Growth Seekers (45–60)	Prefer stability with returns above FD/PF	Want growth without stress	Balanced allocation reduces shocks
Disciplined Professionals (30–45)	Believe in long-term investing but dislike volatility	Want to stay invested without worry	Smoother ride ensures commitment
Strategic Investors	Focused on preventing drawdowns while capturing upside	Want risk-managed compounding	Fund tilts allocation dynamically between 40–65% equity

Key Benefits at a Glance
	. Equity-linked return potential with controlled volatility
	. Dynamic allocation for better timing and time spent with assets
	. Ideal bridge between Pure Equity and Pure Debt
	. Suitable for both retirement accumulation and future SWP planning

How to register under Aditya Birla MSF scheme
Documents required
	. KYC - Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card). Aadhar should be linked with the registered mobile number for seamless registration journey.
Contribution
	. Account Opening contribution: Min Rs. 500/- and Max no limit.
	. Subsequent contribution: Min Rs. 1,000/- p.a. and Max no limit.

Key features:

ABSLPF Secure Retirement Equity Fund – NPS (Tier 1)

Designed for Long-Term Wealth Creation with Risk-Adjusted Discipline

Can be considered by :

Investment Approach :

Asset Allocation Strategy :

Superior Risk-Return Score — Simplified

Return Based on Historical Index Performance:

ABSLPF Secure Future Fund – NPS (Tier 1)

Designed to Grow in Upside. Built to Stay Steady in Downside. It’s a dynamically managed hybrid strategy that aims to deliver long-term equity-like growth with controlled volatility. It is meant for investors who want consistent compounding without taking aggressive market risk

Asset Allocation Strategy (Core Framework)

Investment Universe & Benchmark

Rolling Return Performance (Historical Consistency)

Case Study: 2010–2016 – When Equity Struggled, Hybrid Quietly Won
From 2010 to 2016:

Who Should Invest?

Multiple Scheme Framework (MSF)

Key features:

ABSLPF Secure Retirement Equity Fund – NPS (Tier 1)

Designed for Long-Term Wealth Creation with Risk-Adjusted Discipline

Can be considered by :

Investment Approach :

Asset Allocation Strategy :

Superior Risk-Return Score — Simplified

Return Based on Historical Index Performance:

ABSLPF Secure Future Fund – NPS (Tier 1)

Designed to Grow in Upside. Built to Stay Steady in Downside. It’s a dynamically managed hybrid strategy that aims to deliver long-term equity-like growth with controlled volatility. It is meant for investors who want consistent compounding without taking aggressive market risk

Asset Allocation Strategy (Core Framework)

Investment Universe & Benchmark

Rolling Return Performance (Historical Consistency)

Case Study: 2010–2016 – When Equity Struggled, Hybrid Quietly Won From 2010 to 2016:

Who Should Invest?

Case Study: 2010–2016 – When Equity Struggled, Hybrid Quietly Won
From 2010 to 2016: