Bullish markets propel NPS assets to Rs 11.73 lakh crore, up 27.85% YoY

NPS assets soar: Assets in the National Pension System (NPS) experienced a surge of 27.85 per cent year-on-year (YoY) until April 20, reaching Rs 11.73 lakh crore, driven by bullish market conditions. 

The total Assets Under Management (AUM), including Atal Pension Yojana (APY), remained steady compared to the end of March 2024, standing at Rs 11.73 lakh crore, according to PFRDA data cited by media houses.

During the first 20 days of April, only 51,331 new subscribers registered for NPS and APY combined.

The non-government sector, comprising corporates and retail investors, witnessed substantial growth in NPS assets, soaring by 38.88 per cent YoY to Rs 2.27 lakh crore. In contrast, NPS assets in the government sector increased by 25.35 per cent to Rs 9.04 lakh crore.

Pension fund gains

Over the past three years, pension funds have achieved an average equity return of 17.7 per cent, while the overall equity returns since the inception of the National Pension System (NPS) stand at approximately 13.56 per cent.

As of April 20, the non-government sector added 8.75 lakh new subscribers YoY, while the government sector saw an increase of only 7.11 lakh subscribers.

In the non-government sector, 9.47 lakh new subscribers joined NPS during the fiscal year 2023-24, with 8.10 lakh coming from the 'all citizen model' and 1.37 lakh being corporate employees.

Govt staff drive NPS increase

The number of new government employees enroling in NPS during the fiscal year 2023-24 was 7.1 lakh. The growth in NPS assets has been supported by awareness campaigns conducted by industry participants and the regulator.

In March, NPS assets, including APY, grew by 30 per cent YoY, reaching Rs 11.50 lakh crore. Equity allocations accounted for approximately Rs 2.1 lakh crore of this total. As of March 2, the total number of NPS and APY subscribers was 7.25 crore, reflecting a 16 per cent increase over the previous year.

It took six years and six months for NPS to achieve an AUM milestone of Rs 1 lakh crore after its implementation in 2009. Subsequently, it took 4 years and 11 months to further increase the AUM to Rs 5 lakh crore. The AUM doubled to Rs 10 lakh crore as of August 25 last year from Rs 5 lakh crore in just 2 years and 10 months.