NPS Bharat Fund of Funds (NB-FoF) is a dedicated Alternative Investment Fund (AIF) focused Fund of Funds established under the NPS framework to channel a portion of NPS assets (Pension Savings) into carefully selected Alternative Investment Funds in India.

It serves as an institutional investor in order to facilitate structured exposure of NPS assets to high-quality AIFs, while ensuring strong governance, risk management, and fiduciary discipline.

The NB-FoF aims to:

NPS Bharat FoF Platform is a centralized Fund-of-Funds mechanism that acts as a single-window interface for onboarding, evaluating, investing, and post investment monitoring of eligible AIFs on behalf of NPS Trust, ensuring standardized due diligence, coordinated investments, and ongoing oversight

Only SEBI-registered Category I and Category II AIFs are eligible for investment, in accordance with the applicable Pension Fund Regulatory and Development Authority (PFRDA) investment guidelines.

The NB-FoF follows a sector-agnostic investment approach, with no predefined restrictions on sectors. Investments may be made across sectors, subject to applicable regulatory guidelines and internal evaluation criteria.

The corpus of the NB–FoF is based on PFRDA-permitted limits for alternative investments under NPS.

As per extant PFRDA investment guidelines:

•    Up to 1% of AUM (Government Sector) may be allocated to alternative assets (including AIFs).

•    Up to 5% of Scheme E & C AUM (Non-Government Sector) may be invested in alternative assets (including AIFs).

Note: The regulatory ceiling also includes investment in Gold/Silver ETFs & REITs/InvITs.