The recent volatility in the equity market has had an impact on the annual returns of the National Pension System (NPS) funds invested in equity schemes. As of December 14, the annual returns on these funds stood at 24.37%, down from nearly 40% at the end of September. This decline can be attributed to the broader market slide and volatility that has occurred since September.
The NPS assets under management (AUM) have seen a slight increase, reaching ₹13.79 lakh crore as of December 14, up from ₹13.46 lakh crore as of November 10. Despite the recent market downturn, NPS assets have grown by 27.34% year-on-year, showcasing a strong performance overall.
While the equity scheme returns have moderated since September, they still remain higher compared to other schemes within the NPS. The average return on equity schemes is 24.37%, while the Central government scheme has a return of 12.59% and the State government scheme has a return of 12.68%. The Pension Funds for Atal Pension Yojana have generated an average return of 12.72% in the last year.
The private sector NPS assets have shown a modest increase, growing by 36.40% to reach ₹2.77 lakh crore as of November 30. The number of subscribers in the private sector has also seen a significant rise, indicating a growing interest in NPS as a retirement savings vehicle among private sector employees.
Corporate sector-related NPS assets have also shown robust growth, reaching ₹2.06 lakh crore as of December 14. The number of subscribers in the corporate sector and the ‘All Citizen Model’ has also increased, pointing towards a wider adoption of NPS across different segments of the population.
Overall, despite the recent market volatility, NPS continues to offer competitive returns for investors, making it a popular choice for long-term financial planning and retirement savings. The steady growth in assets under management and the increasing number of subscribers across various sectors reflect the growing appeal and recognition of NPS as a reliable investment option.
