DOUBLE DIGIT RETURNS ON NATIONAL PENSION SYSTEM (NPS)
SCHEMES FOR
FINANCIAL YEAR 2012-13
The National Pension System (NPS) regulated by
Pension Fund Regulatory and Development Authority (PFRDA) has delivered double
digit returns for the financial year 2012-13 and has evidenced itself as not
just being the cheapest retirement product but also as the highest returns
generating scheme.
PFRDA
advises that various NPS schemes have earned the following average annual
returns during the financial year recently ended on 31st March,
2013 (Weighted Average):
Details are as under:
Sr. No.
|
Scheme
|
Average
returns (in %)
|
1
|
Central Government
|
12.39
|
2
|
State Government
|
13.00
|
3
|
Swavlamban
|
13.40
|
4
|
Private: Equity
|
8.38
|
5
|
Private: Corporate Debt
|
14.19
|
6
|
Private: Government Debt
|
13.52
|
Last
year PFRDA had issued revised guidelines for Registration of Pension Fund
Managers to manage NPS for Private sector, under which eight Pension Fund
Managers have been registered so far- SBI Pension Funds Pvt. Ltd., UTI
Retirement Solutions Ltd., LIC Pension Fund
Ltd., Kotak Mahindra Pension Fund Ltd., Reliance Capital Pension
Fund Ltd., ICICI Prudential Pension Funds Management Co. Ltd., HDFC Pension
Management Co. Ltd. and DSP Black Rock Pension Fund Managers Pvt. Ltd.
Pension
Fund Managers are now allowed to prescribe their own fee subject to ceiling of
0.25% to enable an economically viable model for their operations.
PFRDA
also recently revised its Investment Guidelines, with a view to improve
performance of Pension Fund Managers by direct investment in equity &
corporate debt and not through mutual funds etc. Further for better risk
management prudential sectoral norms have also been introduced.
The
National Pension System which was introduced by the Central Government in
January 2004 for its new entrants and subsequently extended to the private
sector in May 2009 has accumulated a corpus of Rs 33,000 crores
contributed by 50 lakhs subscribers.
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