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India’s pension assets continue to record smart growth, with the latest Pension Fund Regulatory and Development Authority (PFRDA) data showing an overall growth in assets under management (AUM) of 35.65 per cent on a year-on-year basis to ₹5,32,378 crore as of end November 2020.
The overall AUM as of end-November 2019 stood at ₹3,92,467 crore.
And, as against the AUM of ₹4,17,479 crore as of end-March 2020, the latest reading reflects a growth of 27.5 per cent on a sequential basis, implying that the Covid-19 pandemic has had little impact on the growth of pension assets this year.
In fact, the PFRDA has been taking steps such as simplifying the process of online onboarding, making it user friendly and enabling them to onboard digitally from the comfort of their homes.
It maybe recalled the pension AUM had surpassed ₹5-lakh crore mark in the July-September 2020 quarter.
PFRDA Chairman Supratim Bandyopadhyay had then said that the overall AUM could touch close to ₹6 lakh crore by end-March next year.
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NPS inflows
The latest data from PFRDA clearly showed that there have been steady inflows in the National Pension System (NPS) across all segments, including government, private corporates and retail. The returns, generated over a long period of time besides the income tax benefits, have made NPS an unbeatable product.
The overall AUM has been bolstered by sharp rise in corporate customers, which grew from nine lakh as of end-November 2019 to 10.66 lakh as of end-November 2020. Nearly four lakh new subscribers have come in under the ‘all citizens sector’ (retail segment) to 14.11 lakh subscribers as of end-November 2020 from 10.58 lakh subscribers as of end-November 2019.
Between November 2019 and November 2020, the number of Central government subscribers to the NPS grew 4.34 per cent to 21.43 lakh. On the State front, the number of NPS subscribers grew 7.73 per cent to 49.61 lakh subscribers.
The PFRDA is eyeing 7-7.5 lakh new NPS subscribers (voluntary) to be onboarded this fiscal.
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Atal Pension Yojana
There has been sharp surge in AUM under the Atal Pension Yojana at ₹14,221 crore, up 50.14 per cent over ₹9,472 crore as of end-November 2019. The number of APY subscribers has also seen a sharp rise to 2.5 crore as of end-November 2020 from 1.91 crore as of end-November 2019.
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