Committee of Investment Experts for Strategic Asset Allocation and Risk Governance (SAARG)

The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a Committee of Investment Experts for Strategic Asset Allocation and Risk Governance (SAARG) to review, recommend and modernise the investment framework under the National Pension System (NPS).

Mandate and Objective
SAARG has been tasked with undertaking a comprehensive review of existing NPS investment guidelines, benchmarking them against leading global pension systems as well as the evolving Indian investment ecosystem. The key objective is to strengthen the investment architecture of NPS to support long-term retirement wealth creation, enhance diversification, improve risk management practices, and expand subscriber choice.

Key Areas Under Review
The scope of SAARG’s work includes:

• Strategic asset allocation frameworks
• Introduction and review of asset classes
• Performance measurement and accountability mechanisms
• Asset–Liability Management (ALM) practices
• Valuation standards for alternative investments
• Portfolio stability and liquidity optimisation measures
• Governance and intermediary architecture
• Integration of sustainability considerations in investment decision-making

Towards a Robust and Future-Ready NPS
Through its recommendations, SAARG is expected to align the NPS investment framework with global best practices, ensure greater resilience of pension portfolios, and enhance confidence among subscribers. The detailed Terms of Reference of the committee have been placed at Annexure.