New Investment Options for NPS Subscribers in Central Autonomous Bodies
The Government of India has broadened the investment choices available under the National Pension System (NPS) for employees of Central Autonomous Bodies (CABs). This initiative, confirmed by a recent memorandum from the Department of Expenditure within the Ministry of Finance, now allows CAB employees to access additional investment options previously available only to Central Government employees.
In November 2025, the Department of Financial Services announced new investment choices, which are now being extended to NPS subscribers working in CABs. The two investment options available are designed to cater to varying risk appetites and financial objectives of employees planning for retirement.
Aggressive Life Cycle Fund (LC-75-High)
The first option is the Aggressive Life Cycle Fund, now renamed as LC-75-High. This fund permits an equity exposure of up to 75%. It targets employees looking for significant long-term growth potential, making it suitable for those who are willing to take on increased risks for potentially higher returns.
Balanced Life Cycle Fund
The second investment opportunity is the Balanced Life Cycle Fund, now referred to as the Aggressive Life Cycle Fund. This option has a more moderate approach, allowing a maximum equity exposure of 50%. It features a gradual reduction in equity allocation starting at the age of 45, aiming to strike a balance between growth and stability.
The primary goal of introducing these investment options is to offer greater flexibility to NPS subscribers within the CAB framework. Employees can now tailor their investment strategies according to their risk tolerance and retirement plans. This extension is expected to enhance the appeal of the NPS, giving employees in CABs more choices in how they save for their future.
To ensure that all CABs are aware of these new investment choices, Administrative Ministries and Departments have been instructed to notify the CABs under their control. The new investment options will be integrated into the Central Record Keeping Agency (CRA) system for easier access by employees.
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