PFRDA Plans To Expand NPS Investments To Unlisted Companies Via AIF And Commodities | Savings and Investments News

PFRDA to add new investment options in NPS

The rising discretionary income in the hands of people demands new avenues of investment. They are looking to diversify their asset portfolio allocation. To cater this demand, the Pension Fund Regulatory and Development Authority (PFRDA) is working to expand the investment options under the National Pension Scheme (NPS) beyond the traditional ones. According to CNBC TV18-report quoting chairperson of PFRDA Sivasubramanian Ramann, the organization is working on a new list of investible instruments that will include commodities such as gold and silver, as well as unlisted companies through alternative investment funds (AIFs).

The new framework could treat AIF investments as a distinct asset class instead of categorizing them under equity or debt, which should make operations easier for pension funds, added CNBC TV-18 report. These changes are expected to give fund managers greater flexibility to design schemes that appeal to a wider range of investors, including gig workers and women. Ramann added that the revised investment guidelines are likely to be finalised within the next 30–45 days, allowing pension funds to launch new schemes and direct long-term capital into emerging sectors.

PFRDA Introduces MSF In NPS

In a major overhaul to the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has introduced the Multiple Scheme Framework (MSF) for non-government sector (NGS) subscribers. It will be effective from October 1, 2025, which coincides with ‘NPS Diwas’, and applies to non-government sector subscribers (corporate employees, professionals, self-employed and gig/platform workers).

The reform, introduced under Section 20(2) of the PFRDA Act, 2013, will allow subscribers such as corporate employees, professionals, self-employed individuals, and gig economy workers to access and manage multiple schemes under a single Permanent Account Number (PAN). Earlier, subscribers could operate only one investment choice per tier.

Earlier, they had the option to choose one investment per tier, which now leads to greater diversification and personalization.

MSF allows persona-targeted schemes possible for gig workers, professionals, entrepreneurs and corporate employees.

They can select moderate and high (Up to 100% equity in high-risk). PFs may also introduce low-risk.