Pension parking lot expanded to gold and silver ETFs, AIFs, Invits

PFRDA has overhauled NPS investment rules, allowing wider exposure to AIFs, REITs, InvITs, commodities, IPOs and a broader equity universe to boost returns and deepen diversification

Unlocking the flow of annual retirement savings worth about ₹1 trillion into a wider range of assets, including alternative investment funds (AIFs), equities, gold and silver exchange traded funds (ETFs), infrastructure investment trusts (Invits) and Basel-III tier-I bonds issued by state-owned shadow banks, the Pension Fund Regulatory and Development Authority (PFRDA) has significantly liberalised its investment guidelines for the National Pension System (NPS). 

Speaking to Business Standard, PFRDA Chairperson S Ramann said the opening up of fresh investment avenues for NPS assets is aimed at improving returns for its millions of members, which include government employees hired after January 1,