Assets Of National Pension System Increased 38% To Rs 2.40 Lakh Crore

PFRDA chief said that the regulator is planning to bring out a guaranteed annuity product for the pension fund customers. And are still discussing a guaranteed annuity product as there is a provision for the same in the Act.

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Assets Of National Pension System Increased 38% To Rs 2.40 Lakh Crore

The total assets under management (AUM) of the pension fund players operating under the National Pension System (NPS) and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) have increased 38 percent to Rs 2.40 lakh crore in 2017-18.

Read Also: PFRDA Relaxed Norms For Partial Withdrawal Under Pension’s Scheme

PFRDA chairman said that the subscriber base of the industry has grown 37 percent to 21.8 million and the new players who want to join the industry have to wait further as the government is yet to decide how to structure the 49 percent foreign direct investment (FDI) that is allowed in the pension fund industry.

Read Also: National Pension’s Scheme Details, Procedure To Apply For Scheme

However, seven pension fund players which had been giving an annual return of around 10 percent in recent years, have given a slightly less return of 9.9 percent during 2017-18.

PFRDA chief said that the regulator is planning to bring out a guaranteed annuity product for the pension fund customers. We are still discussing a guaranteed annuity product as there is a provision for the same in the Act. We will definitely come out with a product under this category. A guaranteed product would have lower returns than the normal product, he said.

Read Also: Retirement Pension’s Plan, Government Welfare Schemes SCSS, PMVVY

PFRDA has also solicited views on increasing the maximum current equity exposure allowed for the pension fund players from the existing 50 percent to 75 percent.

Source Link- http://indianexpress.com/

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