The consolidated circular, which took effect immediately, expands the investible universe while tightening risk controls.
Kurian Jose, CEO, Tata Pension Management, said the revised rules make NPS portfolios more contemporary. “By allowing judicious, strictly capped exposure to Gold and Silver ETFs, AIFs, REITs and municipal bonds, the new framework introduces crucial diversification and access to specialized asset classes, enhancing the potential for higher risk-adjusted returns,” he said.
Impact on pension funds
Fund managers now have a wider set of tools to build and rebalance portfolios. The addition of precious-metal ETFs and broader equity indices, including Nifty 250 stocks, increases options beyond traditional government bonds and large-cap equities. Corporate bond allocations—subject to rating norms—may see more infrastructure and municipal issuances being considered for yield optimisation.
Impact on subscribers
For government employees and APY members, contribution rules remain unchanged. The shift lies in how their money can be invested. Limited exposure to gold, silver and alternative assets introduces diversification that may help cushion portfolios during market volatility, while the core allocation to government securities preserves safety.
The circular also raises the bar on compliance. Pension funds must track rating movements, index changes and exposure limits closely, ensuring portfolios stay within the prescribed thresholds.
