NPS investors can now go all-in on equity with MSF: Here’s what you need to know

Investors in India’s National Pension System (NPS) can now allocate 100% to equity—but only through a newly launched option called the MSF (Maximum Security Fund). Wealth advisor Neil Borate shared the update on X, calling it a “reality” for those seeking higher exposure to equity within the NPS framework.

Previously, equity allocations in NPS Tier 1 accounts were capped at 75%, limiting aggressive investors. With the introduction of MSF, users can now bypass that cap—though with a few key conditions.

Borate outlined a simple five-step process to start contributing to MSF via the NPS CRA portal, emphasizing that the lock-in period is either 15 years or until age 60, whichever is earlier.

“This is effectively like subscribing to a new fund,” Borate explained in replies to user questions. “You cannot move your existing NPS corpus to MSF—only fresh contributions are allowed.” However, investors retain the flexibility to move back to the standard NPS schemes if they choose.

MSF contributions can be made either as a lump sum or monthly, depending on user preference. Regular monthly contributions to existing NPS allocations will continue unless manually changed.

One user asked if MSF simply meant being able to pick any fund manager like HDFC, SBI, or even Zerodha. Borate clarified: “You can choose from the 10 approved NPS pension fund managers. Not Zerodha.”

The new feature opens doors for savers who want to take a more growth-oriented path within a retirement-oriented product—though it comes with a trade-off in liquidity.

For those comfortable with a 15-year lock-in and seeking full equity exposure within a regulated pension framework, MSF might be a compelling new tool. Investors should, however, weigh the risk and understand the fund manager’s approach before committing.