The Pension Fund Regulatory and Development Authority (PFRDA) is anticipating the overall possession under management (AUM) of the National Pension Scheme (NPS) to reach Rs 9 trillion by the end of the 2022-23 fiscal year. For the 2022 calendar year, the total AUM has surged 22 per cent, to Rs 8.5 trillion. Nevertheless, despite the fact that there has actually been a substantial double- digit development in subscribers from corporates, the penetration at company level is still low.

From 12,000 business, the penetration stays at just around 4 per cent. Amongst the newer possessions, PFRDA has actually invested around Rs 1,100 crore in REITs and InvITs, accumulating much better returns than all other categories.

Presently, the authority has 17 percent exposure in equity, 51 percent in government securities, and 27 per cent in business bonds, and the rest in other instruments. To promote advocacy in the pension fund sector, there is likewise a discussion to form a market body in the lines similar to that of Association of Mutual Funds in India (Amfi), which has assisted in speeding up the development of the MF industry. After an evaluation conference with pension fund supervisors, PFRDA chairman Supratim Bandyopadhyay said that if the supervisors demand, they can be permitted to get listed.

It is notable that these business work on thin margins and, currently, just about five of the ten have net revenue. He likewise added that the PFRDA board will talk about the approval of the minimum assured return plan in the next 7-10 days, after which it will be notified.