PFRDA expects AUM of Rs 9 trillion by end of FY23, shows data

The Pension Fund Regulatory and Development Authority (PFRDA) is expecting the total asset under management (AUM) of the National Pension Scheme (NPS) to reach Rs 9 trillion by the end of the 2022-23 financial year.

For the 2022 calendar year, the total AUM has surged 22 per cent, to Rs 8.5 trillion.

However, even though there has been a significant double- digit growth in subscribers from corporates, the penetration at company level is still low. From 12,000 companies, the penetration remains at only around 4 per cent.

Amongst the newer assets, PFRDA has invested around Rs 1,100 crore in REITs and InvITs, accumulating better returns than all other categories. Currently, the authority has 17 per cent exposure in equity, 51 per cent in government securities, and 27 per cent in corporate bonds, and the rest in other instruments.

To promote advocacy in the pension fund sector, there is also a discussion to form an industry body in the lines similar to that of Association of Mutual Funds in India (Amfi), which has helped in accelerating the growth of the MF industry.

After a review meeting with pension fund managers, PFRDA chairman Supratim Bandyopadhyay said that if the managers request, they can be allowed to get listed. It is noteworthy that these companies work on thin margins and, currently, only about five of the ten have net profit.

He also added that the PFRDA board will discuss the approval of the minimum assured return scheme in the next 7-10 days, after which it will be notified.