Pension funds spike as one-year equity returns jump to 29 per cent: Report
reported Business Line . This average annual return of 29.35 per cent in equities in the first week of February is more than triple the return of about 7.87 per cent seen in corporate bonds. It is even higher than the 9.61 per cent in government securities, about 11.43 per cent in Central and 11.39 per cent in State government schemes, data showed.
Over the last three years, the seven pension funds have delivered an average return of 16.89 per cent. The average return from equities since the inception of NPS stood at 13.34 per cent. Meanwhile, the overall National Pension System assets — including Atal Pension Yojana — grew by a robust 29 per cent on a y-o-y basis as of February 3 at ₹11.26-lakh crore.
Out of the total NPS AUM of ₹11.26- lakh crore, the total NPS monies parked in equities stood at about ₹2-lakh crore. In February last year, NPS assets stood at ₹8.73-lakh crore. NPS assets will touch ₹12 lakh crore by the end of March 2024, PFRDA Chairman Deepak Mohanty had recently said.
The robust growth in NPS assets was aided by strong showings on the ‘corporate’ and ‘all citizens model’ categories. So far, this fiscal up to February 4, as many as 6.7 lakh new subscribers have joined NPS. While the all-citizens model saw 5.59 lakh new subscribers, the corporate model saw 1.11 lakh new subscribers.
PFRDA is hopeful of taking the new subscribers’ level to at least a million by the end of March 2024 although it has targeted 13 lakh new subscribers this fiscal. ALSO READ: New NPS partial withdrawal rule: Effective date, eligibility, process, other details you should know In the last 12 months as of February 3, as many as 8.42 lakh new subscribers were onboarded into NPS. Last fiscal year PFRDA had added a million new
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