PFRDA expands NPS, APY investment options for higher returns

• PFRDA has updated its investment framework for government-sector NPS and Atal Pension Yojana (APY) schemes.
• The new rules expand the investible universe to include Gold/Silver ETFs, AIFs, REITs, and municipal bonds, while tightening risk controls.
• This diversification aims to enhance potential for higher risk-adjusted returns and align India's pension investment framework with global standards.
• Fund managers gain wider tools for portfolio building, and subscribers may benefit from increased diversification and potential inflation-linked returns.
• Contribution rules for government employees and APY members remain unchanged, but pension funds face increased compliance requirements.

Why It Matters: New rules diversify your pension investments, potentially boosting returns and stability.