NPS MSF: Ignoring Asset Allocation Can Expose Retirement Corpus to Shocks

• New NPS Multiple Scheme Framework (MSF) offers flexibility, including up to 100% equity investment, but demands critical asset exposure tracking.
• NPS investments are divided into Equity (E), Corporate Debt (C), and Government Securities (G), each with different risk-return profiles.
• Allocating 100% to equity risks retirement savings to market swings, lacking a buffer from less volatile assets like debt.
• Unlike traditional NPS Auto Choice, MSFs do not automatically rebalance based on age; investors must actively manage asset allocation.
• Experts advise against 100% equity and emphasize balancing E, C, and G to mitigate retirement shocks and ensure financial security.