The government-run National Pension System (NPS) has delivered impressive returns over the past year. During this period, the NPS has provided returns of up to 36%. This gain comes at a time when the stock market is continually reaching record highs, benefiting NPS investors and significantly increasing the number of investors. The NPS's AMU has now surged to approximately ₹12.5 trillion.
According to Deepak Mohanty, Chairman and Managing Director of the Pension Fund Regulatory and Development Authority (PFRDA), the NPS's AUM has grown by around ₹150,000 crores in the past six months. It is estimated that if this response continues, the AMU will reach ₹15 trillion by March 2025.
Rule Change Under NPS
Mohanty mentioned that changes in the NPS rules have been implemented since July 2024. To offer subscribers more benefits, the T+0 scheme has been introduced. This rule allocates NAVs on the same day of investment, which is why around 30% of investments are now under the T+0 scheme.
Increase in Investment in Atal Pension Yojana
During a review meeting of the Atal Pension Yojana (APY), Deepak Mohanty revealed that the NPS and APY have 75 million active subscribers. At present, the APY has 60 million active subscribers, while the NPS boasts 15 million users. Of the 67 million gross enrollments in the APY with a 9.2% assured return, 12 million new subscribers have joined in the past year. Additionally, over half of the subscribers under this scheme are women.
The National Pension System is a scheme that guarantees not only pension benefits but also a lump-sum income for investors. It is a market-linked scheme based on the returns of the stock market. Under this scheme, two types of forms are filed: Tier 1 and Tier 2.
