The Pension Fund Regulatory and Development Authority (PFRDA) will allow individual pension houses to launch tailor -made investment plans in what could be an important overhaul for $ 175 billion industry.
Account holders will now be able to serve several pension programs compared to just one earlier, PFRDA said in a submission Tuesday, who confirmed an earlier Bloomberg News report. The change will help subscribers to set their goals for retirement and wealth, PFRDA said.
Although India’s pensions are growing rapidly, pensioners in the country generally have little flexibility in how their savings are invested, because the regulator tried to control the risks. Most of the time managers of funds such as SBI Pension Fund of ICICIs buy Prudential Pension Funde securities that match the Activamix of plans that have been determined in advance by the PFRDA.
With the new proposal, pension funds can create their own tailor -made products that focus on a broader range of investors preferences and risky appetite. That would enable the money to advertise a broader range of potential returns and to focus more specifically on customers.
At present, pensions under the national pension system are allowed to invest in four asset classes – equity, debts that are sold by companies, government bonds and alternative investment funds. The customer can choose from a handful of predetermined PFRDA plans according to their individual risky appetite.
Submitting the labor subscribers will benefit from an extension of choice and personalization, while fund managers will be able to offer more innovative products and to deepen the market.
Industry has increasingly attracted foreign investments through joint ventures in recent years. About four years ago, the supervisor increased the limit for direct foreign investments to 74 percent of 49 percent.
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Published on September 16, 2025
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