PFRDA to Make Maiden AIF Investments in Two Months, Says Chairman S Ramann

CHENNAI — The Pension Fund Regulatory and Development Authority (PFRDA) is set to make its first round of investments in Alternative Investment Funds (AIFs) over the next two months, marking its maiden entry into the AIF ecosystem.

Speaking to reporters in Chennai on Friday, PFRDA Chairman S Ramann announced that the NPS Bharat Fund of Funds (FoF) has been established under the NPS Trust to facilitate the calibrated participation of pension savings in AIFs.

The initiative comes after earlier attempts faced implementation hurdles. According to Ramann, the PFRDA board had approved the concept of investing in AIFs five years ago, but operational difficulties prevented execution at the time. Those operational challenges have now been addressed.

Under the revised structure, the pension regulator will act as a limited partner in the funds. Out of the total equity portfolio, up to 1% can be earmarked for government funds, while up to 5% can be allocated to non-government funds.

The move expands the regulator's investment portfolio beyond its traditional allocations in equities and debt.

Currently, total assets under management under the pension system stand at ₹18.4 lakh crore. The subscriber base from the non-government sector has crossed 90 lakh.