NPS Gets New Labels: Does Your Fund Pick Still Fit?
PFRDA has relaunched how NPS schemes are grouped and shown to investors — sorting funds by equity exposure level so you can compare risk and returns more clearly before choosing where your retirement money goes.
If your NPS picks the wrong risk bucket, even a 1% return gap can mean ₹8–12 lakh less at retirement on a ₹5,000/month contribution over 25 years.
PFRDA's NPS overhaul costs you nothing — but could unlock thousands more at retirement
Key Takeaways
Log into your NPS account on the CRA portal (cra-nsdl.com or karvy CRA) and check which scheme and asset class (E, C, G, or A) your contributions are currently allocated to.
Compare your current equity exposure against your age and retirement timeline — if you are under 45 and have less than 30% in Scheme E, consider rebalancing toward higher equity within NPS rules.
If you are on Auto Choice, verify which life-cycle fund you are enrolled in (Conservative LC-25, Moderate LC-50, or Aggressive LC-75) and switch if it does not match your risk comfort — you get one free switch per year.
PFRDA has relaunched how NPS schemes are grouped and shown to investors — sorting funds by equity exposure level so you can compare risk and returns more clearly before choosing where your retirement money goes.
Here's what happened: PFRDA has revised the classification framework for NPS schemes, grouping them by equity exposure level to standardise how fund options are displayed to subscribers.. The new system requires pension fund managers to present risk ratings, returns, and key parameters in a uniform format, similar to how mutual funds are shown to investors.. The change affects both Active Choice subscribers (who pick their own asset mix) and Auto Choice subscribers (where allocation shifts automatically with age)..
What you should do: Log into your NPS account on the CRA portal (cra-nsdl.com or karvy CRA) and check which scheme and asset class (E, C, G, or A) your contributions are currently allocated to.. Compare your current equity exposure against your age and retirement timeline — if you are under 45 and have less than 30% in Scheme E, consider rebalancing toward higher equity within NPS rules.. If you are on Auto Choice, verify which life-cycle fund you are enrolled in (Conservative LC-25, Moderate LC-50, or Aggressive LC-75) and switch if it does not match your risk comfort — you get one free switch per year..
NPS subscribers get one free scheme/fund manager switch per financial year — use it after reviewing the new classification framework before March 31 to rebalance without any switching cost.
For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.
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- [1]“NPS schemes get a new classification: What PFRDA's revised framework means for your investment choices” mint - money · 31 Aug 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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