The ongoing correction in benchmark equity indices has further pulled down the average annual returns on NPS monies parked in equity scheme to 30 per cent as of November 10, latest Pension Fund Regulatory and Development Authority (PFRDA) data showed. 

This is against an annual return of near 40 per cent recorded as of September 28. As of November 2, the return was down to 33.5 per cent. 

Both Sensex and Nifty50 have fallen over 10 per cent from their record high peak hit in September 2024, sending the markets into a correction territory.

While Nifty50 reached a lifetime high of 26,277.35 on September 27, Sensex had on the same day hit a record peak of 85,978 on the same day. Nifty50 has seen a sharp 2745 points fall (over 10 per cent fall) since end September, weighed down by lacklustre Q2 corporate earnings and record FPI pullout owing to ‘Trump Trade’ amid rising US yields.

However, overall NPS Assets Under Management (AUM) inched up to touch ₹13.46 lakh crore as of November 9, from a level of ₹13.39 lakh crore as of November 2. NPS assets grew robust 29.35 per cent on a year-on-year (y-o-y) basis as of November 9, official data showed.

As of end September, overall NPS assets stood at ₹ 13.40 lakh crore, up 32 percent on y-o-y basis.

Although average annual equity scheme returns moderated since end September, it was much higher than the 13.14 per cent in Central government scheme and 13.25 per cent in State government scheme. Average return generated by Pension Funds for Atal Pension Yojana in the last one year stood at 13.28 per cent, while the return was 9.22 per cent since inception.

In the last one year, riding on buoyant equity markets, the NPS monies parked in pure Equities has given astronomical returns going up to as high as 40 per cent. 

NPS scheme has generated competitive returns since inception. For the government sector, NPS has given an average return of 8.83 per cent since inception. For the non-government sector, the equity scheme has given return of 13.67 per cent, corporate debt 9.14 per cent and government securities 8.83 per cent. 

Private Sector AUM

Private sector NPS assets growth saw moderation, clocking a near 40 per cent growth at ₹2.69 lakh crore as of November 10. As of October end , it was ₹2.70 lakh crore, up 44.52 per cent on a y-o-y basis.

The number of NPS subscribers in the non-government sector (private sector) also saw impressive growth, with a 21.24 per cent y-o-y rise to 60.70 lakh, latest data from the PFRDA showed.

The private sector’s strong NPS assets growth of 40 per cent has substantially outpaced the government sector’s 27 per cent y-o-y growth, albeit on a much higher base. 

Government sector (Centre and State government) NPS assets touched ₹10.30 lakh crore as of November 9, PFRDA data showed. This was higher than the ₹10.23 lakh crore AUM as of end September 2024.

New Milestone 

Corporate sector related NPS achieved a new milestone with AUM touching ₹2 lakh crore (₹2.01 lakh crore as of November 9). The ‘All Citizen Model’ (basically individuals) had assets to tune of ₹68,458 crore. 

The number of subscribers in Corporate sector (employees of companies who have signed up) stood at 21.75 lakh, while there are 38.96 lakh subscribers in ‘All Citizen Model’.

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