NPS corpus to reach Rs 12 trillion by March: pension regulator
Aided by favourable market conditions, the assets under management under the National Pension System (NPS) including Atal Pension Yojana rose about 28% on year to Rs 11 trillion as of January 13 this fiscal, and are poised to reach Rs 12 trillion by March 31, Pension Fund Regulatory and Development Authority Chairman Deepak Mohanty said on Friday.
Despite the near-saturation in enrolment of government employees, the subscriber base under NPS rose by 16% on year to 70.69 million as of January 13. As many as 7.44 million new subscribers have been added so far in the current financial year.
The average returns generated by pension funds under NPS have been very attractive. Equities have given 26.94% in one year and 13.3% since inception. The average annual returns since inception have been 9.06% in corporate bonds, 8.62% in government securities, 9.46% in the central government scheme and 9.32% in the state government scheme, Mohanty said.
“These are competitive returns compared to what we see in the market,” Mohanty said. “Assets under management should reach Rs 12 trillion by the end of the current financial year,” he said. The AUM was at Rs 8.98 trillion as of March 31, 2023. AUM would need to grow by 33.6% to reach the target set for March 2024.
A few states that have issued a notification to pull out of the NPS to revert to the old defined pension system (OPS) continued to contribute to the NPS irrespective of the on-paper withdrawal.
“We are roping in regional rural banks to sell NPS in all their branches across the country. We also have a relaxed point of presence regulation to make it easier for onboarding individual agents and corporate agents for NPS,” Mohanty said.
With the government sector saturated, PFRDA is
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