PFRDA Chairman Predicts NPS AUM Will Hit Rs 15 Lakh Crore by Fiscal Year-End
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Mumbai, Dec 21 (NationPress) The Pension Fund Regulation and Development Authority (PFRDA) Chairman Deepak Mohanty stated on Saturday that the assets under management (AUM) of the National Pension System (NPS) is projected to rise to Rs 15 lakh crore by the end of the ongoing fiscal year (FY25).
During his speech at the inauguration of the Association of NPS Intermediaries, Mohanty highlighted that the NPS is expected to experience a remarkable 30 percent compound annual growth rate (CAGR) in the upcoming years.
As of November 30, 2024, the AUM of NPS was recorded at Rs 13.55 lakh crore, a significant increase from Rs 11.72 lakh crore as of March 31, 2024, according to PFRDA data. The primary sources contributing to the AUM of NPS include the Central government, state government, and the corporate sector.
The average returns generated by pension funds in the equity sector are 26.56 percent for one year, 16.19 percent for three years, and 13.65 percent since inception, as per the data.
With AUM surpassing Rs 13.8 lakh crore, both the Atal Pension Yojana (APY) and NPS, which together have a subscriber base of 8 crore, have established themselves as one of the most effective, tax-beneficial, and economical retirement solutions.
In a significant initiative aimed at securing the financial futures of young children in India, the government introduced the NPS Vatsalya pension scheme in September, which provides flexible contribution and investment options for parents or guardians.
The NPS Vatsalya scheme is tailored specifically for minors, representing a crucial step forward in financial planning. This scheme not only aims to safeguard the future of young citizens but also promotes a culture of savings from an early age.
Under the NPS Vatsalya scheme, parents can contribute a minimum of Rs 1,000 per month with no maximum limit. The scheme will be managed by parents until the child reaches 18 years of age, at which point the account will be transferred into the child’s name.
