NPS to have equity exposure of 25% in FY 27, says PFRDA Chair

The National Pension Scheme (NPS) will have an equity market exposure of 25% by fiscal 2027 , said Chairperson of Pension Fund Regulatory and Development Authority (PFRDA) Sivasubramanain Raman on February 13 at an event in Mumbai. “If you look at the share of G-Secs compared with last year, it’s about the same. Equity has gone up a bit, corporate bonds has come down a little bit. So, because we have allowed equity to grow from 15% to 25% for the largest scheme, which is the government composite scheme. So, obviously equity has gone up today, it’s at about 19% or so. And therefore, I think corporate bonds as a group come down a little bit,” said Mr. Raman. Further, he said that the regulator is expected to enable Alternative Investment Funds(AIF) exposure in pension schemes by March 2026. “we’ve not put any money into it till now. Okay. Now, we’ve created the structure, we’ve got the operating systems in place, we should be able to have money flowing into AIFs in this fiscal year. The operating processes are in place. We should be ready to go within March,” he said. Mr. Raman also said that the pension regulator set up a committee called the MARS (Minimum Assured Return Scheme) which is discussing the idea of launching this scheme.