Regulator Pension Fund Regulatory and Development Authority (PFRDA) has created a separate asset class under which private sector National Pension System (NPS) subscribers can invest up to 5% in AIFs and REITs. The new class is in addition to the existing three categories—equity, corporate bond and government debt.
With creation of a separate class, private sector subscribers can now invest up to 5% of funds in commercial mortgage-based securities or residential mortgaged based securities and units issued by Real Estate Investment Trusts (REITs), and asset backed securities regulated by Sebi. They can also invest in units issued by Infrastructure Investment Trusts and Alternative Investment Funds (AIF).
