PFRDA Expands Investment Scope: Pension Funds Can Now Invest in Gold and Silver ETFs

The Pension Fund Regulatory and Development Authority (PFRDA) has revised its investment guidelines, enabling pension funds to diversify further by investing in the top 250 listed stocks by market capitalisation and in commodity exchange-traded funds (ETFs) including gold and silver. These changes take effect immediately. 

New Investment Rules Permit Gold and Silver ETFs 

In a circular dated December 11, 2025, the PFRDA announced that pension funds governed by it can now invest in the top 250 companies on Indian stock exchanges based on market capitalisation.  

This is an expansion from the previous list of 200 approved stocks. The addition of 50 more companies broadens the scope for portfolio diversification for pension schemes managed under the National Pension System (NPS). 

Along with equities, the regulator also approved investments in commodity ETFs, specifically those tracking gold and silver. This marks the first time that pension funds in India will have direct exposure to commodities through regulated investment instruments. 

Current Asset Base and Subscriber Statistics 

The Indian pension fund sector under PFRDA now oversees total assets worth ₹15,78,000 crore, catering to approximately 8 crore subscribers.  

These reforms align with the broader goal of expanding participation, with the regulator targeting 30 crore pension fund subscribers by 2030.  

The introduction of new investment avenues is part of progressive changes to make pension products more adaptable to varied risk appetites and return expectations. 

Read More: PPFAS, Bank of Baroda Seek PFRDA Approval to Manage NPS Pension Funds! 

Scope of Reforms in the Context of Previous Changes 

These updates follow previous decisions where fund houses were allowed to tailor schemes based on different investor risk profiles. This provided more flexibility in terms of investment design.  

With the new circular, pension funds gain more options across asset classes, including equities and commodities, providing greater scope for balancing risk and reward. 

Conclusion 

The revised norms by the PFRDA have extended pension fund investment coverage to top 250 listed companies and select commodity ETFs. This marks a diversification step intended to support varied risk preferences while managing large-scale retirement funds responsibly. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the Securities Market are subject to market risks, read all scheme-related documents carefully.