PFRDA widens investment rules, allows pension funds to invest in top 250 stocks and commodity ETFs
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Effective immediately, the changes build on earlier customisation reforms. PFRDA, overseeing ₹15.78 lakh crore and 80 million subscribers, aims for 300 million by 2030.
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India’s pension regulator has revamped investment guidelines for pension funds, enabling broader portfolio diversification to enhance returns.
The Pension Fund Regulatory and Development Authority (PFRDA) now permits private pension funds to invest in the top 250 listed companies by market capitalization. This expands their previous investment scope, which was restricted to 200 selected stocks approved by the National Pension Scheme trust.
Entry into commodities
Pension funds can now include gold and silver exchange-traded funds (ETFs) in their portfolios, marking their debut in commodity investments.
These revisions, detailed in a Wednesday circular, took immediate effect.
Expanding pension reach
The updated regulations continue recent reforms designed to boost pension fund adoption through expanded private sector offerings. Earlier measures allowed providers to create tailored schemes matching subscribers’ risk preferences.
India’s private pension sector currently manages ₹15.78 lakh crore ($175.59 billion) in assets for 80 million participants. The regulator intends to grow this subscriber base to approximately 300 million by the decade’s end.
Published on December 11, 2025
