📊 Enhancement of Investment Choice Options
For Central Government Subscribers (NPS & UPS)
⚡ Key Update: PFRDA has expanded investment choice options for Central Government employees subscribing to NPS and UPS schemes. Two new Auto Investment Choice options have been introduced, bringing the total available choices to six.
Pursuant to the Gazette Notification No. FX-4/2/2025-PR dated 13.11.2025 issued by the Ministry of Finance, Department of Financial Services, two additional Auto Investment Choice options have been introduced, increasing the total number of available choices from four to six.
Current Subscription Status: Approximately 4% of Central Government subscribers have opted for an investment choice other than the Default Scheme.
| Investment Choice | Description |
|---|---|
| Default Scheme | Contributions are invested as per the predefined asset allocation pattern managed by three Pension Funds |
| Active Choice (100% G-Sec) | Investment solely in Government Securities |
| Auto Choice - Life Cycle 25 (Low) | Equity exposure of 25% until age 35, tapering to 5% by age 55 |
| Auto Choice - Life Cycle 50 (Moderate) | Equity exposure of 50% until age 35, tapering to 10% by age 55 |
🔶 Auto Choice - Life Cycle 75 (High)
Equity Profile: 75% equity exposure until age 35, tapering to 15% by age 55
Suitable For: Younger subscribers with higher risk appetite seeking stronger growth potential
🚀 Auto Choice - Life Cycle (Aggressive)
Equity Profile: 50% equity exposure until age 45, tapering to 35% by age 55
Suitable For: Aggressive investors maintaining higher equity allocation even closer to retirement
If you want to opt for any investment choice other than the Default Scheme, you must:
- Exercise one of the five non-default investment options mentioned above
- Select one Pension Fund from among the ten Pension Funds registered with PFRDA
| Investment Category | Investment Pattern |
|---|---|
| Government Securities & Related Investments | Up to 65% |
| Debt Instruments & Related Investments | Up to 45% |
| Equities & Related Investments | Up to 25% |
| Short Term Debt Instruments (Money Market) | Up to 10% |
| Asset Backed, Trust Structured & Misc. Investments | Up to 5% |
📌 Note: From 1st April 2025, the limit for Equities and Related Investments has been increased to 25%.
- Exercise your investment choice judiciously based on a thorough review of scheme and Pension Fund performance
- Visit www.npstrust.org.in for updated scheme-wise and Pension Fund-wise performance information
- Make informed decisions considering your age, risk tolerance, and financial goals
- Review the rationalization of nomenclature for Auto Choice/Life Cycle Funds dated 17th October 2025 (PFRDA/2025/16/Reg-PF/02)
The enhanced investment choice options are already available to Central Government subscribers through the Central Record keeping Agencies (CRAs).
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