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.
AIFs with a target corpus of ₹100 Crore or more are eligible to apply for consideration under the FoF platform.
Eligible AIFs can only apply through the “Apply Now” Button on the FoF Platform. Only those AIFs who pass initial-assessment score can submit their application.
No, as per Section 25 of the PFRDA Act, 2013, AIFs cannot invest in securities of Companies or Funds incorporated and operated outside India.
A First-time Fund Manager is an Investment Manager that is raising and managing its first Alternative Investment Fund and therefore lacks an established track record in managing AIFs or similar pooled investment vehicles, though the team may have prior individual experience in investments.
No, shortlisting does not guarantee capital commitment. It is a two-stage selection process. Shortlisting of AIFs by the screening committee is only the 1st stage. Final commitment depends on:
• Pension Fund Investment Committee’s Approval
• Regulatory Ceilings prescribed by PFRDA
• Commercial Negotiation outcomes
Registration → Self-Assessment → Submission of Application →Screening Committee → Pension Funds Investment Committee → Documentation → Onboarding of AIFs.
The centralized AIF Cell under NPS Trust conducts primary due diligence, including but not limited to:
• Investment strategy evaluation
• Track record verification
• Governance review
• Risk assessment
• Legal and regulatory compliance
• Operational diligence
In addition, individual Pension Funds may undertake further independent due diligence, as deemed appropriate.
AIF Business refers to the end-to-end fund management activities undertaken by the Investment Manager in relation to Alternative Investment Funds, including fundraising, deal sourcing, investment execution, portfolio management, monitoring, and exits.
AIFs are required to submit, inter alia, the following documents for evaluation by the AIF Cell: