Considering NPS Vatsalya for Your Child’s Future? Explore the Pros and Cons Before Investing
By Anulekha Ray
NPS
Feb 21, 2025
Since 1 October 2025, NPS pension funds can run their own schemes under the Multiple Scheme Framework (MSF). These sit alongside the standard E, C and G schemes. The headline difference is equity: an MSF scheme can hold up to 100%, against the 75% cap on a regular Tier I account.
A year in, NPS Trust lists 20 MSF schemes holding ₹1,068 crore. This piece lists every one, shows who dominates, and explains what you sign up for.
The rules in brief
- Who can invest: non-government subscribers (All Citizen and Corporate models).
- Equity: up to 100%, depending on the scheme.
- Vesting: 15 years, or age 60 if that comes earlier.
- Switching: you cannot move between MSF schemes for 15 years. Before then, the only move allowed is out of MSF into the pension fund’s regular schemes.
- Money in: fresh contributions only. You cannot shift an existing E, C and G corpus into an MSF scheme.
- Fees: up to 0.30% a year, against a maximum of 0.12% on regular schemes.
Every MSF scheme
| Pension fund | Scheme (as listed by NPS Trust) | Equity range | Assets (₹ crore) |
|---|---|---|---|
| HDFC | Equity Advantage – I | 85%-100% | 359.37 |
| ICICI Prudential | DREAM – I | 50%-100% | 160.28 |
| HDFC | Surakshit Income – I | 55%-75% | 141.14 |
| ICICI Prudential | My Family – I | 50%-85% | 88.21 |
| SBI | Jeevan Swarna – Tier I | 0%-100% | 59.26 |
| Kotak | Kuber Equity – I | 80%-100% | 40.74 |
| Axis | Golden Years – I | 65%-100% | 40.20 |
| UTI | Wealth Builder E – I | 90%-100% | 36.66 |
| Tata | Smart Retirement – I | 70%-100% | 24.95 |
| SBI | Akshay Dhara – Tier I | 25%-50% | 23.56 |
| DSP | Long Term Equity – I | 0%-100% | 18.95 |
| Aditya Birla Sun Life | Secure Retirement Equity – I | 90%-100% | 13.91 |
| LIC | Growth Plus – Tier I | 0%-100% | 13.62 |
| HDFC | Surakshit Income – II | 0%-25% | 12.73 |
| LIC | Smart Balance – Tier I | 65%-85% | 11.70 |
| UTI | Dynamic Asset – Tier I | 40%-65% | 8.03 |
| Aditya Birla Sun Life | Secure Future – I | 40%-65% | 7.93 |
| UTI | Wealth Builder E – II | 90%-100% | 3.90 |
| UTI | Dynamic Asset – Tier II | 40%-65% | 2.23 |
| Kotak | Atmanirbhar Fund | 25%-75% | 0.64 |
| Total | 1,068.01 |
NPS Trust, details as on 30 September 2026. Names are as listed by NPS Trust; “I” and “II” generally refer to Tier I and Tier II. Equity range is the scheme’s permitted band.
Who runs the money
| Pension fund | MSF schemes | Assets (₹ crore) | Share |
|---|---|---|---|
| HDFC | 3 | 513.24 | 48.1% |
| ICICI Prudential | 2 | 248.49 | 23.3% |
| SBI | 2 | 82.82 | 7.8% |
| UTI | 4 | 50.82 | 4.8% |
| Kotak | 2 | 41.38 | 3.9% |
| Axis | 1 | 40.20 | 3.8% |
| LIC | 2 | 25.32 | 2.4% |
| Tata | 1 | 24.95 | 2.3% |
| Aditya Birla Sun Life | 2 | 21.84 | 2.0% |
| DSP | 1 | 18.95 | 1.8% |
HDFC alone manages almost half of all MSF money, and its Equity Advantage scheme is a third of the total. HDFC and ICICI Prudential together hold over 70%. The other eight pension funds have ₹19 crore to ₹83 crore each.
The category is growing fast from a small base. MSF assets were about ₹145 crore on 1 February 2026 (Outlook Money, citing PFRDA). By 30 September they had passed ₹1,000 crore. That is still a fraction of a percent of the roughly ₹4.1 lakh crore in regular Tier I E, C and G schemes run by these ten funds.
What the equity ranges tell you
The ranges vary more than the scheme names suggest:
- High equity, minimum 80% or more: HDFC Equity Advantage, Aditya Birla Sun Life Secure Retirement Equity, Kotak Kuber Equity and UTI Wealth Builder.
- Equity-led with a lower floor: Tata Smart Retirement (70%–100%), Axis Golden Years (65%–100%) and ICICI Prudential DREAM (50%–100%).
- Fully flexible, 0% to 100%: DSP Long Term Equity, LIC Growth Plus and SBI Jeevan Swarna. The manager can hold anything from no equity to all equity, so you are buying the manager’s allocation calls, not a fixed equity exposure.
- Balanced: ICICI Prudential My Family (50%–85%), LIC Smart Balance (65%–85%), HDFC Surakshit Income – I (55%–75%), UTI Dynamic Asset (40%–65%), Aditya Birla Sun Life Secure Future (40%–65%), Kotak Atmanirbhar (25%–75%) and SBI Akshay Dhara (25%–50%).
- Income-oriented: HDFC Surakshit Income – II (0%–25% equity).
The rules are changing
On 28 August 2026, PFRDA issued a framework to standardise how NPS schemes are classified and named. For MSF, it sets five categories by equity share:
| MSF category | Equity |
|---|---|
| A: Aggressive Growth | 80%–100% |
| B: High Growth | 60%–80% |
| C: Balanced Growth | 35%–60% |
| D: Conservative | 10%–35% |
| E: Debt | 0%–10% |
A pension fund can offer at most two schemes per category per tier. Names must follow a fixed format: the fund’s abbreviation, “NPS”, the category code, then the scheme name. Pension funds had 30 days to reclassify and 45 days to merge any excess schemes.
Two things follow. Scheme names and some equity ranges in the table above are likely to change as funds reclassify. And the flexible 0%–100% schemes, as listed, span every category, so they will have to be fitted into one.
Returns: too early to judge
Most MSF schemes launched from October 2025, so none has a full-year record that means much. Treat any return figure as noise for now. For a 15-year commitment, the best evidence available today is the same pension fund’s record in its regular Scheme E.
The fee difference
At 0.30%, an MSF scheme costs up to 0.18 percentage points a year more than a regular scheme at 0.12%. On a ₹10 lakh balance, that is ₹3,000 a year against ₹1,200. The gap grows with the balance, every year, for at least 15 years.
Who MSF suits, and who it doesn’t
It can suit you if:
- you want more than 75% equity inside NPS;
- you can leave the money untouched for 15 years; and
- you already hold a regular NPS account and are adding fresh money.
It doesn’t suit you if:
- you may need the money within 15 years;
- you are close to retirement; or
- you would rather the lower-cost E, C and G schemes and decide the mix yourself.
For the decision framework, see New NPS MSF schemes with 100% equity: how to decide if you should invest or stay away. To judge the teams behind these schemes, see the Scheme E comparison.
Sources: MSF schemes, equity ranges and assets: NPS Trust, details as on 30 September 2026. MSF rules: PFRDA circular of 16 September 2025 and 1 Finance’s March 2026 explainer. Classification framework: PFRDA circular of 28 August 2026, as reported by Outlook Money. February 2026 assets: Outlook Money. Regular Tier I assets: Value Research, October 2026.
