The total AUM of PFRDA i.e. Asset Under Management as on 10th July 2021 is 6.2 lakh crores. At the end of the financial year 2020-21, this amount was Rs 5.78 lakh crore.
Currently investing in only such stocks whose market cap crosses 5000 crores.
An official of apex pension regulator PFRDA said on Tuesday that pension fund managers (PFMs) will soon be allowed to invest in initial public offerings (IPOs) and key equities. Pension Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay told reporters that the regulator aims to increase the number of pension fund members.
At present, pension fund managers can invest only in such stocks, whose market capitalization is more than Rs 5,000 crore and which are tradeable in options and futures trading. Bandyopadhyay said that this limits opportunities for fund managers. He cited the example of Avenue Supermarkets, where PFMs could not invest due to restrictions.
Investment will also be done in IPO, FPO
“We will notify the new rules in two or three days, which are more liberal on the categories where equity investments can be made,” he said, adding that under the new rules, PFM IPO, follow-on. Public Offering (FPO), will be able to invest in an offer for sale. Apart from this, investment will also be allowed in top 200 stocks traded on NSE and BSE.
Bandyopadhyay favors more investment in equity
Bandyopadhyay stressed that he personally favors more investments in equities, although the necessary instructions to mitigate risks will remain. The total number of NPS subscribers is 4.37 crore, out of which maximum 2.90 crore are under Atal Pension Yojana. Bandyopadhyay said, “We are targeting to increase the member base by one crore in the financial year 2021-22, in which Atal Pension Yojana will have 90 lakh members.”
Asset Under Management 6.2 Lakh Crore
The total AUM of PFRDA i.e. Asset Under Management as on 10th July 2021 is 6.2 lakh crores. At the end of the financial year 2020-21, this amount was Rs 5.78 lakh crore. Regarding the way returns are coming on pension fund investment, Bandyopadhyay said that equity investment has given a return of 11.31 percent. Corporate debt has given a return of 10.21 per cent and that of government securities is 9.69 per cent. He said that the fund manager will have the freedom to invest in REITs as well.
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