The importance of the pension scheme has increased rapidly during the Corona period. The reason for this is that such Covid has made everyone aware of the importance of saving for future needs.
In view of this, the concern of saving their future has increased a lot among the people. The data released by the Pension Fund Regulatory and Development Authority (PFRDA) clearly shows that the tendency among people to secure their future has increased rapidly.
According to the data released by PFRDA, the combined assets (AUM) under the management of National Pension System (NPS) and Atal Pension Yojana have grown by 29.88% till 31 June 2021. Thus the assets managed under it have become Rs 6.27 trillion. This calculation has been done on an annual basis. In the previous year June 31, 2020, the combined AUM was Rs 4.83 trillion. During this period, the number of NPS investors has also increased rapidly. The total number of NPS investors in July 2021 was 4.42 crores as against 3.57 crores during the previous year. That is, an increase of 23.79% on a yearly basis.
Was launched in 2004
NPS was first launched on 1 January 2004 for Central Government employees. Later all the state governments adopted it for their employees. NPS is mandatory for those government employees who joined service after 2004 and it was opened to the private sector in 2009. Given the market-linkedness and track record of good returns over the long term, investor interest in this has increased rapidly.
