Pension funds may soon invest in gold ETFs: Here's why
India's pension regulator is thinking about letting pension funds put money into gold exchange-traded funds (ETFs).
Pension managers recently asked for this to help diversify and grow their massive ₹15.5 trillion ($177 billion) portfolios, which have soared since the pandemic.
Gold ETFs have delivered nearly 30% returns this year
Gold ETFs—like Nippon India ETF Gold, SBI ETF Gold, and HDFC Gold ETF—have delivered nearly 30% returns this year.
Adding them could potentially give pension funds more ways to balance risk, fight inflation, and avoid putting all their eggs in stocks or bonds.
It's a move that could make your future retirement savings a bit more resilient.
Push for alternative investments
Pension funds are also pushing for looser rules on investing in alternatives like REITs and InVITs (currently capped at 5%).
The PFRDA's draft guidelines have been sent regarding gold investments, reflecting how markets—and expectations—are evolving in 2025.