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The Government has asked the pension regulator PFRDA to ensure that full range of investment products including alternate investment funds (AIFs) are made available for Indians saving for their retirement.
Although PFRDA has done a wonderful job in establishing a low cost platform for pensions, there is need to expand the scope of investment avenues for pension monies so that full range of investment products are available to Indian savers, Jayant Sinha, Minister of State for Finance, said at the PFRDA’s second pension conclave here on Thursday.
“Global investment products should also be available to our savers so that they could diversify and improve risk reward ratio on their portfolios.
"They are commonly available to people saving for their retirement around the world. It’s a global practice. We in India should also have it”, Sinha told reporters on the sidelines of the conclave.
In India, there is a need to recognise that having set of diversified uncorrelated asset classes pushes out the risk reward frontier and is really good for people saving for the retirement, Sinha said.
Today marks the completion of two years of statutory journey of Pension Fund Regulatory & Development Authority (PFRDA).
Later, Hemant Contractor, Chairman, PFRDA, told BusinessLine that the pension regulator would soon take a call on allowing AIFs as an investment product for pension monies.
“We are looking to introduce new investment products including AIFs (including venture capital and private equity)”
A high-level panel headed by former SEBI Chairman G.N.Bajpai had in its recent report recommended that pension monies be allowed in AIFs.
Contractor said that PFRDA will look to allow only those AIFs that are registered with market regulator Securities and Exchange Board of India.
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