India may lift the gold ETF investment limit for pensions to stimulate investment demand.

The Indian pension regulator is considering lifting restrictions on certain investment categories. According to reports, the government and industry sources revealed that in late July this year, retirement fund managers met several times with senior officials of the Pension Fund Regulatory and Development Authority of India, requesting permission for pension funds to invest in gold ETFs. Sources said the regulator is considering the proposal and has even sent draft wording on gold investments to fund companies for feedback. Sources added that these pension funds collectively manage about $177 billion in assets and also requested for relaxation of investment rules for real estate investment trusts and infrastructure trusts. Under India's current regulatory system, gold, real estate, and infrastructure funds are all considered alternative assets, with a maximum allocation limit of only 5% in pension fund portfolios.