New PFRDA Rules Expand NPS Options: Gold, Silver ETFs, AIFs & More

• NPS investors can now diversify into gold, silver ETFs, and Alternative Investment Funds (AIFs), along with REITs, InvITs, and ABS, under new PFRDA rules.
• The new framework consolidates 27 previous circulars, immediately replacing older guidelines and allowing PFRDA to adjust asset-class limits up to 150%.
• Revised investment caps include equities at 25%, corporate debt at 45%, and alternative investments at 5%, with stricter filters for AIFs, REITs, and InvITs.
• IPO/FPO/OFS investments are tightened, requiring companies to meet strict size and listing conditions, including a market capitalization equal to the 250th company in the NIFTY 250 index.
• The circular emphasizes due diligence, risk assessment, cost optimization, and timely reporting of IPO/FPO investments by Pension Funds.

Why It Matters: New NPS rules expand investment choices, boosting diversification for investors.