India’s pension regulator announced revised investment rules for the country’s pension funds on Wednesday, enhancing diversification opportunities for improved returns.
The Pension Fund Regulatory and Development Authority (PFRDA) will now permit private pension funds to invest in the top 250 stocks by market capitalization listed on Indian exchanges. Previously, these funds were restricted to a list of 200 stocks approved by the National Pension Scheme trust.
Entry into Commodities
The PFRDA has also authorized investments in gold and silver exchange-traded funds (ETFs), enabling pension funds to explore commodity investment options.
The updated investment guidelines were released in a circular on Wednesday and take effect immediately.
Expanding Pension Reach
These revisions are part of a broader strategy to enhance the appeal of pension funds by allowing private sector entities to provide a wider array of options to savers. Previously, the regulator had allowed pension fund providers to tailor schemes for different client segments based on their risk profiles.
The private pension fund industry currently manages ₹15.78 lakh crore (approximately $175.59 billion) in assets and serves 80 million subscribers. The regulator aims to expand this subscriber base to nearly 300 million by 2030.
Published on December 11, 2025.
