Multiple Scheme Framework (MSF)

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 100% NPS Equity Index — and actively managed to outperform them.

Also, with the 55% NPS Equity Index & 45% NPS Debt 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, etc.

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

Build on the strength of India’s top companies and actively managed to outperform them.

Asset Allocation Strategy :

Asset Class	Objective
Equity (100% NPS Equity Index)	No speculative small caps
Short-term debt instruments and related investments	Higher long-term conviction
Alternative Assets#	Potential to beat index
# Within Alternate assets we can mention our limited exposure to REITS

Why the Aditya Birla Secure Retirement Equity – I?
	. 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 TRI	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 Small-cap	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 — 100% NPS Equity Index offers a balanced and attractive risk-reward profile.

ABSLPF Secure Future Fund – NPS (Tier 1) Product Brochure Scheme Essentials
(Scheme Secure Future – I)

Designed to Grow in Upside. Built to Stay Steady in Downside.

Dynamic 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.
Power of compounding: 15-year vesting period aligns with long-term goals.
Long-term wealth builder: Minimum 15-year vesting period.
Low-cost advantage: Charges capped at 0.30% AUM
Tax benefits: Under the old tax regime, save taxes u/s 80C, 80CCD(1B) & 80CCD (2); Under the new tax regime, save taxes u/s 80CCD (2) (Same as the common NPS scheme)

Typical investor profiles & their needs

Investor Profile	Core Need	Why This Fund Fits
Steady & conservative growth seekers (Age 18 – 50)	Want corpus growth without major drawdowns	Balanced allocation reduces shocks
Capital protection seekers (Age 50 – 70)	Wish to beat inflation without risking entire capital	Generates alpha over fixed-return instruments without risking capital
Strategic dynamic fund investors (Age 18 – 70)	Want multi-asset dynamic fund allocation	Promises great risk-return balance with dynamic asset allocation

Who Should consider investing in Aditya Birla Scheme Secure Future – I?

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

Investment Universe

Benchmark Component	Allocation
NPS Equity Index	55%
NPS Government Securities Index	22.5%
NPS Corporate Bonds Index	22.5%

Asset Allocation Strategy (Core Framework)

Asset Class	Role in Portfolio
55% NPS Equity Index	Participate in market growth
45% Short-term debt instruments and related investments	Cushion volatility and ensure steady accrual

The fund has the flexibility to increase equity up to 55% in favourable market phases and reduce it to 45% when risk surfaces, allowing dynamic participation and disciplined defence.

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 55–45% 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.