The importance of the pension scheme has increased rapidly during the corona period. Because of this, everyone is aware of the importance of saving for such covid future needs. In view of this, the concern for saving their future is quite high among the people. Data released by the Pension Fund Regulation and Development Authority (PFRDA) clearly shows that the tendency for people to secure their future is rapidly increasing.
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According to data released by the PFRDA, the combined pension assets (AUMs) under the management of the National Pension System (NPS) and the Atal Pension Scheme grew by 29.88% until 31 June 2021. Thus, the assets managed under it were Rs 6.27 lakh crore. This calculation is made on an annual basis. As of June 31, 2020, the combined AUM was Rs 4.83 trillion. During this period, the number of NPS investors also increased rapidly. The total number of NPS investors in July 2021 was 4.42 crore compared to 3.57 crore in the previous year. This means a 23.79% increase on an annualized basis.
Launched in 2004
NPS was first launched on 1 January 2004 for central government employees. Then all the state governments adopted it for their employees. NPS is mandatory for government employees who have joined the service since 2004 and was opened to the private sector in 2009. Given the market-related and good returns record in the long run, investor interest in this has increased rapidly.