How MSF Empowers You to Build a Personalised Retirement Strategy

A New Era in Personalised Retirement Planning

Retirement planning in India is undergoing a profound transformation. For decades, savers were limited by one-size-fits-all pension products that offered little flexibility or control. The Multiple Scheme Framework (MSF), introduced by the Pension Fund Regulatory and Development Authority (PFRDA), changes this completely.

MSF empowers subscribers of the National Pension System (NPS) to tailor their retirement portfolios according to their goals, life stages, and risk appetite. It is a major step towards achieving true financial freedom by giving individuals the ability to choose, combine, and customise investment schemes that best suit their long-term vision.

What is the Multiple Scheme Framework (MSF)?

The Multiple Scheme Framework is a regulatory innovation introduced by the PFRDA in 2025. It allows non-government sector subscribers to invest in multiple NPS schemes under a single Permanent Retirement Account Number (PRAN).

This means investors no longer need separate accounts or limited scheme choices. Under MSF, Pension funds can design and launch diverse NPS schemes that cater to distinct investor profiles. The initiative aligns India’s retirement planning ecosystem with global best practices by providing greater flexibility, transparency, and portfolio diversification within the NPS structure.

Why MSF is a Game-Changer for Indian Investors?

• Empowers Retirement Planning: MSF gives subscribers the power to personalise their pension portfolios. They can now hold multiple investment schemes, each aligned to different goals or risk levels, under one PRAN. This flexibility enables better alignment between an individual’s financial strategy and life stage.
• Diversified Investment Options: Earlier, NPS subscribers could choose only one scheme per account tier. With MSF, investors can select from multiple schemes designed by different Pension Funds, including those offering up to 100% equity exposure for suitable risk profiles. This enhances diversification and long-term return potential.
• Transparency and Benchmarking: Each MSF scheme comes with its own NAV, benchmark, and disclosure norms, ensuring accountability and ease of comparison. Subscribers can monitor performance transparently and make well-informed decisions.
• Alignment with Global Standards: The framework mirrors advanced pension systems across the world, promoting competition, innovation, and efficiency among Pension Fund Managers. It positions the Indian NPS as a truly world-class retirement vehicle.
• Long-Term Wealth Creation: MSF encourages disciplined and diversified investing. By allowing combinations of conservative and growth-oriented schemes, it helps investors pursue higher long-term returns while managing risk effectively.

UTI PF Wealth Builder NPS Equity NPS Scheme

The UTI PF Wealth Builder NPS Equity Scheme is a flagship offering under the MSF structure. It aims for long-term capital appreciation by investing predominantly in equity and equity-related instruments of companies beyond the top 100 by market capitalisation. Its benchmark is the NSE Midcap 100 TRI index, reflecting a focus on mid-cap growth opportunities.

Investment Philosophy

The scheme follows a blend of top-down and bottom-up investment strategies, targeting mid-sized companies with strong fundamentals, improving earnings, and sustainable growth. It emphasises consistency in return metrics such as Return on Capital Employed (ROCE) and Return on Equity (ROE), supported by active fund management and in-depth research.

Asset Allocation Framework

Why it Stands Out under MSF Scheme

The Wealth Builder Scheme allows up to 100% equity allocation, providing high-growth potential for investors seeking long-term capital expansion within the regulated NPS framework. It demonstrates how Pension Funds can design persona-targeted offerings that combine innovation, transparency, and disciplined investment.

UTI PF Dynamic Asset Allocator NPS Scheme

Balanced Growth for the Evolving Investor. The Dynamic Asset Allocator NPS Scheme caters to those who prioritise steady growth, balance, and resilience in their retirement planning. It dynamically manages exposure across equity, debt, and alternative assets to capture opportunities while cushioning against market volatility.

Key Features

• Balanced Growth: Achieves steady returns through disciplined diversification and risk management.
• Adaptive Allocation: Actively adjusts asset mix based on market conditions to maintain portfolio stability.
• Enhanced Liquidity: Minimum tenure of 15 years or exit at age 60/superannuation for Tier I subscribers.
• Low Cost: Charges capped at 0.30% of AUM per annum (exclusive of custodian, CRA, and NPS Trust charges).
• Exclusive Tax Benefits:

Section 80CCD(2): you can claim a deduction under section 80CCD(2) which should not exceed 10% of your basic salary + DA under the old regime and 14% of your (basic salary + DA) under the new regime, subject to a ceiling of Rs 7.5 lakh.

• Regulated and Reviewed: Regular oversight by the NPS Trust and performance evaluation by PFRDA.

Investment Objective

To achieve long-term capital appreciation through equity exposure and steady income generation from debt and alternative assets, using a dynamically managed asset allocation strategy.

Asset Allocation Framework

Investment Strategy

• Dynamic Rebalancing: The portfolio adjusts to quantitative indicators, valuations, and risk metrics to capture opportunities while maintaining balance.
• Diversified Exposure: Spread across equity, fixed income, and alternative assets to mitigate concentration risk.
• Risk Monitoring: Continuous oversight using Value at Risk, Sharpe Ratio, and Tracking Error to maintain performance discipline.
• Performance Evaluation: Quarterly assessment based on risk-adjusted performance metrics such as Treynor and Sortino ratios.
• Compliance Oversight: Daily monitoring of regulatory limits with automated alerts under PFRDA’s MSF Framework.

Who Should Consider It?

The UTI PF Dynamic Asset Allocator is suitable for moderate-risk investors seeking stability with consistent long-term growth. Its balanced approach helps manage volatility while steadily building retirement wealth over time.

Risk Management and Governance Framework

The PFRDA mandates stringent compliance and risk oversight under MSF.
Pension Funds are required to implement a robust risk management system that includes:

• Daily compliance checks and PFRDA guideline monitoring
• Quantitative metrics such as Value at Risk (VaR), Beta, Sharpe Ratio, and Tracking Error
• A structured Risk and Compliance Committee framework with early warning systems to manage volatility.

Additionally, the NPS Trust and Central Recordkeeping Agencies ensure that reporting, disclosures, and fund performance remain transparent and regularly audited.

How MSF Enhances Flexibility and Control

MSF empowers investors to:

• Diversify across multiple schemes, fund managers, and asset classes within one PRAN
• Realign portfolios post the 15-year vesting period or upon exit at age 60 or retirement
• Monitor scheme performance via consolidated CRA dashboards
• Enjoy lower costs, with charges capped at 0.30% of assets under management per annum

This structural flexibility offers investors true ownership over how they plan and grow their retirement wealth.

How to Opt for MSF Schemes

How to Open an MSF NPS Account Online

• Access and Select CRA – Visit this link – https://www.utipension.com/open-nps-account, to open your NPS account and select any one CRA from the three available.
• Provide KYC, Verify & Complete – Enter your KYC details, verify with OTP, and follow the instructions to complete your registration.

How to Open an NPS Account Offline

• Find Your Nearest PoP – Locate the nearest Point of Presence of UTI Pension Fund for NPS registration.
• Complete KYC & Submit – Fulfill KYC requirements and submit your application at the PoP.

Conclusion: Building Your Personalised Retirement Journey

The Multiple Scheme Framework marks a defining moment for retirement planning in India. It transforms NPS from a uniform system into a customisable wealth-building ecosystem that empowers individuals to make smarter, more flexible, and more transparent choices for their future.

Schemes like the UTI PF Wealth Builder NPS Equity Scheme exemplify how MSF is bringing innovation and personalisation to pension planning. For investors looking to combine safety, growth, and freedom within a regulated pension structure, MSF offers the perfect balance.

Start your personalised retirement journey today with UTI Pension Fund and explore the new-age flexibility of the Multiple Scheme Framework.