Robust returns help NPS assets grow 30% in May to ₹9.53-lakh cr

Buoyed by higher stock markets in May, coupled with lower G-sec rates, total assets under management (AUM) of National Pension Linked to Market (NPS) and Atal Pension Yojana (APY) touched ₹9.53-lakh crores as of 27th May 2023, An increase of 29.15 percent year on year, data from the Pension Fund Regulation and Development Authority (PFRDA) shows.

That compares with growth of 25 percent in April and 22 percent in the previous fiscal year. As of the end of May 2022, the total assets under management of NPS was at ₹7.38-lakh crores.

While the NPS stock chart posted a solid 17.1 percent year-on-year return, as of the end of May, the average yield on corporate bonds was 8.08 percent, and 10.16 percent for government securities.

The average return for a year was 10.61 per cent in the case of the central government scheme; 10.58 percent for the state government scheme; and 10.60 percent for the APY.

The continued strong performance of NPS is also an indication that young investors prefer market-related investments over fixed-return vehicles.

million subscribers

The overall AUM growth also came on the back of continued strong response from the non-government sector – both retail and corporate sector categories – in terms of new entrants. More than 1 million new subscribers have been added in the past 12 months.

While assets under management of the company model grew by 38.57 percent year-on-year as of May 27 at ₹ 1.27-lakh crore, AUM’s ‘all citizens’ model grew by 38.82 percent to ₹ 45,352 crore, official data showed. In terms of the number of subscribers, the growth was 19.54 percent and 27.23 percent, respectively.

The frantic pace in the growth of NPS assets under management can be gauged from the fact that the latest figure is more than four times what was recorded of ₹ 2.35-lakh crore as of the end of March 2018. The total number of subscribers has also increased from 2.11 PFRDA data showed.