Aided by strong show from private sector and individual retail participation, the overall National Pension System (NPS) assets under management (AUM) touched ₹ 13.90 lakh crore, up 22.20 per cent year-on-year as of February 15, latest PFRDA data showed. 

In another significant milestone, the number of private NPS subscribers has already crossed the million mark this fiscal year, bolstered by the addition of nearly 1 lakh Vatsalya subscribers, data showed. On the whole in 2024-25, the number of new NPS enrolments stood at 9.48 lakh. 

Between April 1, 2024 and February 15 this year, the number of new corporate category subscribers stood at 3 lakh while the all citizen model saw little over 6 lakh new subscribers. Going by this trend, the overall number of new NPS subscriber enrolments this fiscal is likely to exceed 1.1 million, sources said. 

Private sector NPS assets under management as of February 15 this year stood at ₹2.78 lakh crore, up 28 per cent on a y-o-y basis.

Experts believe that sustained advocacy and simplification of processes are essential to boost voluntary adoption, particularly among the self-employed and private sector employees.

The NPS, launched in 2004, has seen steady growth, with increasing participation from both the government and private sectors. It has seen frenetic growth in the post covid years clocking compounded annual growth of near 30 per cent. 

As of mid-December 2024, NPS assets under management has exceeded ₹13.8 lakh crore, up 28 per cent on a yr-o-y basis.

NPS has generated robust returns for the non government sector since inception.

Private sector NPS had grown much faster between March 2020 to March 2024 at 25 per cent as opposed to 8 per cent growth seen in government sector.

Private sector employees have found NPS to be an attractive proposition and therefore one could see robust growth. The private sector AUM has grown 28 per cent while government sector has grown 20 per cent.

Sharp Fall in Annual Equity Returns

Meanwhile, a near 13 per cent drop in equity benchmarks since October 2024, driven by a sharp corporate earnings slowdown and heavy FPI outflows linked to the “Trump Trade,” has dulled Indian equities, dragging NPS annual equity returns to 5.79 per cent as of February 15, latest PFRDA data showed.

This annual equity return of 5.79 per cent  is substantially lower than the average 9 per cent return that NPS monies deployed in corporate bond scheme generates. It is also lower than the average 8.5 per cent annual return from NPS monies deployed in Central government or State government schemes.

This sharp decline in NPS returns marks a steep fall from the nearly 40 per cent annual return recorded on September 28, 2024, when Indian equity indices hit an all-time high. The slide began soon after, with returns dropping to 30 per cent by November 10, 26.6 per cent by November 30, 24.37 per cent by December 14, further to 15.86 per cent by December 27 and to 10.89 per cent as of February 1.

“FPIs will go where they can find returns. Given that returns-risk equation in India is right now not favourable, they will go to other alternatives which probably is US equities or US bonds at this point in time”, said an economy watcher. In 2025, FPI net outflows have already touched near ₹1 lakh crore. 

Both Sensex and Nifty50 have till date fallen over 12 per cent from their record high hit in September 2024, sending investors in a tizzy.

While Nifty50 reached a lifetime high of 26,277.35 on September 27 last year, Sensex had on the same day hit a record peak of 85,978 on the same day. 

Published on February 18, 2025