NPS (National Pension System) Schemes for Financial Year 2012-13 yields DOUBLE DIGIT return
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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