NPS fund managers have more choices as investment universe expands

Investment advisors are not comfortable with the idea of a retirement product like NPS investing in IPOs

The Pension Fund Regulatory and Development Authority (PFRDA) has made changes to the investment norms that pension fund managers (PFMs) of the National Pension System (NPS) must follow. According to experts, while these changes will allow PFMs to invest in a wider array of products, they could also make their portfolios more volatile.

Investment universe expanded

PFMs could earlier invest in stocks that were part of the futures and options (F&O) segment and had a market capitalisation of more than Rs 5,000 crore. This effectively meant they were able to invest in the top 100 stocks by market cap. Now, their investment