NPS becomes even more beneficial: Now invest in Gold-Silver ETFs and Nifty 250, a new opportunity to increase returns..

A major relief and new opportunity have emerged for National Pension System (NPS) investors. The pension regulator, the Pension Fund Regulatory and Development Authority (PFRDA), has made significant changes to the investment rules for NPS, Unified Pension Scheme (UPS), and Atal Pension Yojana (APY). Now, investments can also be made in Gold ETFs, Silver ETFs, Nifty 250 Index, and Alternative Investment Funds (AIF Category I and II) under these schemes. This information is provided in the PFRDA's master circular issued on December 10, 2025. This circular supersedes all previous investment-related circulars and has come into effect immediately.

What did the PFRDA say?
According to the PFRDA, this master circular has been issued under the PFRDA Act 2013 and Pension Fund Regulations. It clearly defines the investment limits for equity, debt, ETFs (including gold and silver), and other assets for NPS, UPS, and APY.

What is the experts' opinion?
Speaking to ET, Kurian Jose, CEO of Tata Pension Management, said, "The new investment rules make NPS more modern. New asset classes like gold and silver ETFs, AIFs, REITs, and municipal bonds will increase diversification and create the possibility of better returns while managing risk." Investment Limits in NPS, UPS, and APY under the New Rules:
1. Government Bonds (G-Secs) - Maximum 65%

Central/State Government Bonds
PSU EBR Bonds
Gilt Mutual Funds (up to 5% of G-Secs)

2. Corporate Debt - Maximum 45%

Corporate Bonds with an AA rating or above
Bank FDs, Debt Mutual Funds (up to 5%), REIT/InvIT Debt
Municipal Bonds (AAA rating)

3. Short-Term Debt - Maximum 10%

T-Bills, CP, CD, Liquid/Ultra-Short Mutual Funds

4. Equity - Maximum 25%

Nifty 250 Stocks
Sensex/Nifty ETFs
Equity MFs (up to 5%)

5. Alternative and Other Investments - Maximum 5%

Gold and Silver ETFs - up to 1% of AUM
AIFs (Category I & II) - Limited Investment
REITs, InvITs, Asset-Backed Securities

Why is this change important?
It will increase diversification in pension investments.
Better protection against inflation and market volatility.
Potential for better returns in the long run.
This clearly shows that NPS has now become not only safer but also more diversified and return-oriented. Gold and silver ETFs will protect against inflation. Nifty 250 will expand the scope for growth.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.