Combined assets under management (AUM) of the National Pension System (NPS) and Atal Pension Yojana increases 32.91% year-on-year to touch ₹6.47 trillion as of 31 August. In August 2020, the combined AUM of both schemes stood at ₹4.87 trillion.
Total NPS subscriber base at the end of August stood at 4.53 crore from 3.65 crore in August 2020, up 24.06% y-o-y.
Number of subscribers in various schemes under NPS and APY
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The Pension Fund Regulatory and Development Authority (PFRDA), in a release issued on 17 September, said “As on 31st August 2021, total pension assets under management stood at ₹6,47,621 crore showing a Y-o-Y growth of 32.91%.”
Total assets under management under NPS and APY
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NPS was launched for central government employees in January 2004. It was consequently accepted by all state governments for their employees as well. After few years, it was extended to all citizens of India (resident/non-resident/overseas) voluntarily and to private employers for its employees. Hence, investing in NPS is necessary for government employees who joined service after 2004 and it was opened to the private sector in 2009.
NPS is a low-cost investment scheme. It allows exposure to equity for up to 75% of the corpus and is rationally tax efficient.
Apart from this, the Atal Pension Yojana (APY) is a periodic contribution-based pension product and provides a definite pension of ₹1,000-5,000 to subscribers. Also, the regulator has proposed to introduce Instant Bank Account Verification in the interest of underlying subscribers for the orderly processing of their exit requests. In other words, the regulator proposed some changes in premature exit rules for APY to facilitate timely payment of money to subscribers.
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