A Pension Fund Manager, commonly shortened to PFM, is the professional asset management company that actually invests an NPS subscriber's money. Contributions get split across equity, corporate debt and government securities based on PFRDA's investment guidelines. Every NPS account has one PFM assigned at opening. PFRDA allows subscribers to switch it if performance, service quality or a change in investment philosophy makes another PFM more appealing. This guide covers who the current PFMs are, how often a switch is allowed, and the step-by-step process. It also explains how changing a PFM differs from changing an investment scheme.
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Ten Pension Fund Managers are currently registered with PFRDA, after Max Life Pension Fund Management was discontinued from NPS operations in April 2025.
SBI Pension Funds
LIC Pension Fund
UTI Retirement Solutions
HDFC Pension Management Company
ICICI Prudential Pension Fund Management Company
Kotak Mahindra Pension Fund
Aditya Birla Sun Life Pension Management
Tata Pension Management
Axis Pension Fund Management
DSP Pension Fund Managers
Government-sector subscribers can currently choose only among SBI, LIC, and UTI, while all ten PFMs are available under the All Citizens Model and Corporate NPS.
How to Choose a Pension Fund Manager in NPS
Selecting a PFM, whether at account opening or at the time of a switch, benefits from looking past the most recent year's headline return.
Compare returns across five-year and ten-year periods, not only the trailing one year, since consistent performance through different market cycles indicates management quality more reliably than a single strong year
Review assets under management as a rough indicator of scale and the confidence other subscribers have placed in that manager, while treating it as one factor among several rather than a standalone criterion
Examine the credit quality held within the PFM's corporate debt scheme (Scheme C), favouring managers who hold predominantly high-rated instruments
Check how actively the PFM manages duration within its government securities scheme (Scheme G), since this affects sensitivity to interest rate movements
Note that a single PFM manages all scheme types (equity, corporate debt, and government securities) within one account, so the comparison should weigh performance across whichever schemes the subscriber's allocation actually uses, not equity performance alone.
How to Change Your NPS Fund Manager Online
Most CRAs, whether Protean, KFintech, or CAMS, follow a broadly similar process for this request.
Log in to the CRA portal using the PRAN and password
Navigate to the Change Pension Fund Manager section usually found under scheme or account services
Review the list of available PFMs and their recent performance across the relevant schemes
Select the new PFM and confirm whether the change applies to Tier I, Tier II or both
Authenticate the request using OTP, then submit
Wait for confirmation, typically processed within a few working days after which both future contributions and the existing corpus move to the new PFM
How to Change the NPS Fund Manager Offline, Through a Point of Presence
A subscriber unable to use the online portal, or who prefers a physical record of the request, can initiate the same change through a Point of Presence (PoP) or POP Service Provider (POP-SP).
Visit the POP-SP branch where the account is serviced, or any POP-SP willing to accept the request
Obtain and complete the prescribed subscriber request form for changing the Pension Fund Manager, specifying the PRAN, the current PFM, and the new PFM selected
Submit the form along with any identity verification the POP-SP requires
Collect the acknowledgement slip or receipt issued by the POP-SP, which carries a reference number for tracking the request
The POP-SP forwards the request to the CRA for processing, following the same once-per-financial-year limit that applies to an online request
How to Change NPS Fund Manager Within the Allowed Limits
There are regulatory rules and limits for changing your Pension Fund Manager (PFM) and investment options under the National Pension System (NPS).
Tier I PFM Limit: Subscribers can change their PFM once per financial year for a Tier I account. Once this change has been made in a given financial year then no further PFM switch can be requested until the next financial year begins.
Investment Choice Flexibility: Under the standard investment guidelines, subscribers get a separate allowance for investment choice modifications. They can make up to four requests per financial year to change their asset allocation or investment schemes, completely independent of the single PFM switch limit.
Tier II Account Variations: Tier II accounts can also switch. Subscribers can change their PFM exactly 1 time per financial year for a Tier II account.
Changing Your PFM vs Changing Your NPS Scheme
These two actions get confused often, but they are not the same request.
Changing the PFM means moving the management of the existing corpus and future contributions to a different company entirely, while keeping the same broad investment approach
Changing the NPS scheme means adjusting the asset allocation itself, such as switching between Active Choice and Auto Choice, or altering the equity, corporate debt, and government securities split within the same PFM
A subscriber unhappy with returns does not necessarily need a new PFM. Sometimes the more effective fix is adjusting the investment scheme or asset allocation within the current PFM. This can be a smaller, more targeted change than switching providers entirely.
How to Change the NPS Investment Scheme or Asset Allocation
Changing the investment scheme, meaning the allocation across equity, corporate debt, and government securities, or switching between Active Choice and Auto Choice, is a separate request from changing the PFM and carries its own, more generous limit.
Log in to the CRA portal using the PRAN and password
Select the option to change the investment scheme or asset allocation
Choose between Auto Choice, which follows a pre-set life-cycle allocation that shifts automatically with age, and Active Choice, which allows the subscriber to set a specific percentage split across the available schemes
If selecting Active Choice, enter the desired allocation percentages within the limits PFRDA prescribes for equity exposure
Authenticate using OTP and submit
This change is permitted up to four times in a financial year under the All Citizen and Corporate NPS models with Tier I and Tier II tracked as separate allowances. The four-times limit applies equally regardless of whether the subscriber is moving from Auto Choice to Active Choice, adjusting the allocation within Active Choice, or moving from Active Choice back to Auto Choice.
Failure Cases and Status Tracking of Pension Fund Manager Change Request
A PFM change request can be rejected or delayed for several identifiable reasons.
Limit already used: If the once-per-financial-year PFM switch has already been exercised for the account, a second request within the same financial year is rejected outright and has to wait for the next financial year.
KYC or document mismatch: A request submitted through a POP-SP can be held up if the identity details on file do not match the PRAN records, requiring the subscriber to update KYC before the request proceeds.
OTP or authentication failure: An online request not completed within the OTP validity window has to be restarted from the beginning.
To track a submitted request, a subscriber can log in to the CRA portal and check the transaction status section which displays pending, processed or rejected status along with the reference number generated at submission. A request submitted through a POP-SP can be tracked using the acknowledgement number on the receipt, either through the CRA portal or by contacting the POP-SP directly.
Should a Subscriber Change the PFM Under NPS, or Stay
The decision depends on what is actually driving the dissatisfaction.
A subscriber whose current PFM has trailed peers consistently across five-year and ten-year periods, not merely in one volatile year, has a reasonable case for switching, since persistent underperformance across market cycles is unlikely to be a short-term anomaly.
A subscriber reacting to one weak year, particularly in the equity scheme during a market downturn that affected most PFMs similarly, has less reason to switch, since the underperformance may reflect broad market conditions rather than manager skill.
A subscriber whose real concern is the allocation itself, such as wanting less equity exposure closer to retirement, is better served by changing the investment scheme, which can be done up to four times a year, rather than spending the single annual PFM switch on a problem that a reallocation would solve.
Given that the PFM switch is limited to once a year and carries no cost, there is little downside to using it when a considered, multi-year performance gap is evident. The more common error is using it reactively, based on a single period of underperformance that does not persist into the following year.
Why Subscribers Change NPS Fund Manager
A handful of recurring reasons come up when subscribers request this change.
A noticeable, sustained difference in long-term performance compared to other PFMs
Dissatisfaction with service quality or responsiveness from the current PFM
A shift in risk tolerance that a different PFM's approach seems to fit better
Advice from a financial adviser recommending a specific PFM
What to Check Before You Change Your NPS Fund Manager
Switching PFMs is straightforward but a rushed decision can undo more value than it creates.
Compare performance over multiple years, not just the most recent one, since short-term dips do not always reflect the quality of management
Remember that the corpus transfers in full to the new PFM; nothing is withdrawn or taxed as part of a PFM switch
Since the switch is limited to once a year for Tier I, treat the decision as a considered one rather than a reaction to short-term market movement
What Happened to Max Life Pension Fund's Subscribers
Max Life Pension Fund Management asked PFRDA to withdraw from managing NPS assets, and PFRDA cancelled the company's registration with effect from 23 April 2025. The transition to protect existing subscribers took place in two stages. Assets previously managed by Max Life were transferred to UTI Pension Fund with effect from 19 April 2025, so subscribers who had selected Max Life as their PFM found their corpus moved automatically to UTI without any action required on their part.
Separately, subscribers who had registered through Max Life acting as a Point of Presence were moved to Axis Bank with effect from 21 June 2025. Neither transition interrupted the underlying Tier I or Tier II account, and the corpus continued earning returns under the new manager throughout. A subscriber whose assets moved to UTI in this exercise remains free to switch to any other active PFM, subject to the same once-per-financial-year limit that applies to every other subscriber.
Change NPS Fund Manager After Reviewing Your Options
Switching a Pension Fund Manager in NPS is a simple, low-cost way to realign an account with better performance or service. PFRDA has made the online process quick enough that most subscribers can complete it in a few minutes. The more important decision is not how to switch, but whether a PFM change or a scheme change actually solves the underlying concern.
Speak with a PensionBazaar retirement planning expert to review your current PFM and investment allocation before making a change.
FAQs on Changing NPS Fund Manager
Q. What is a PFM in NPS?
PFM stands for Pension Fund Manager, the PFRDA-registered company responsible for investing an NPS subscriber's contributions across equity, corporate debt and government securities. Ten PFMs currently operate under NPS as of 2026 and a subscriber picks one when opening the account.
Q. How often can I change my NPS fund manager?
Once per financial year for a Tier I account. Once a switch has been made in a given year, no further PFM change can be requested until the next financial year starts, so the decision is worth making carefully rather than reactively.
Q. Can Tier I and Tier II have different PFMs?
Yes; under PFRDA rules, a subscriber can choose different Pension Fund Managers (PFMs) for Tier I and Tier II accounts.
Q. Does changing my PFM affect my existing NPS corpus?
No. The accumulated corpus transfers automatically to the new PFM without any withdrawal or liquidation. Only the entity managing the investments changes; the money itself stays within the NPS structure throughout and no tax event is triggered by the switch.
Q. Is there a charge for switching PFMs in NPS?
Switching is usually free or involves only a minimal administrative charge. The exact cost, if any, can vary slightly depending on the CRA managing the account and so checking the current fee schedule before initiating a request is a reasonable precaution.
Q. Can I change my NPS fund manager through the online portal?
Yes. Most subscribers complete this entirely online through their CRA's portal using their PRAN and OTP authentication. An offline route through a Point of Presence also remains available for anyone who cannot use the online process or prefers a physical record.
Q. What is the difference between changing my PFM and changing my NPS scheme?
Changing the PFM moves your corpus and contributions to a different fund management company entirely. Changing the NPS scheme adjusts the asset allocation itself, such as the equity-to-debt ratio, without necessarily switching to a new PFM at all.
Q. What is the difference between changing the PFM and changing the NPS scheme?
Changing the PFM moves the corpus and future contributions to a different fund management company while keeping the existing allocation intact. Changing the scheme adjusts the allocation itself such as the equity-to-debt ratio without necessarily switching to a different PFM.
Q. Can the PFM be changed through a Point of Presence instead of online?
Yes. A subscriber can submit a PFM change request at a POP-SP branch using the prescribed form, subject to the same once-per-financial-year limit that applies online. The POP-SP forwards the request to the CRA for processing and issues an acknowledgement receipt for tracking.
Q. Does choosing Auto Choice affect how often the PFM can be changed?
No. The once-per-financial-year PFM switch limit applies identically under Auto Choice and Active Choice. What Auto Choice does affect is the asset allocation itself, which shifts automatically with age, but the separate PFM switch allowance remains unchanged by that choice.
Q. How many times can the investment scheme or allocation be changed in Tier II?
Up to four times per financial year, tracked separately from the Tier I allowance. This applies under the All Citizen and Corporate NPS models and covers both a move between Auto Choice and Active Choice and an adjustment to the allocation percentages within Active Choice.
22 Oct 2026 
