PPFAS Asset Management Gets PFRDA Approval to Manage National Pension System (NPS) Funds

PPFAS Asset Management Private Limited has received the approval from the Pension Fund Regulatory and Development Authority (PFRDA) to manage the funds under the National Pension System (NPS). This approval marks the PPFAS’s entry into the India’s growing retirement savings segment in where it will soon begin the managing pension assets for the subscribers.

What This Move Means for PPFAS and Investors

With the approval from PFRDA PPFAS AMC will set up the dedicated pension fund entity which will be responsible for launching the schemes and managing long-term investments.

The move also indicates the strategic expansion beyond the its traditional equity-focused approach into the retirement planning and stable long-term capital management.

According to CEO Neil Parag Parikh the company aims to manage the retirement savings with discipline, consistency and investor-focused strategy.

Why NPS is Becoming Popular in India

The National Pension System (NPS) have experienced the steady growth due to increasing the awareness about retirement planning, tax benefits and market-linked returns.

As the rising life expectancy and limited social security more individuals are turning to be professional pension fund managers for long-term financial security.

New Fee Structure and Investor Benefits

The PFRDA has revised the Investment Management Fee (IMF) structure which will effective April 2026.

The new system will follows a slab-based model where the fees decrease as assets under management increase which will benefiting investors through lower costs over period of time.

For the non-government subscribers fees range from the 0.12% to 0.04%, on the other side the government subscribers will enjoy slightly lower rates.

This ensures the cost efficiency, transparency and scalability to managing retirement funds.

Tax Benefits and Features of NPS

NPS system remains the one of the most tax efficient retirement options in India. As in this system subscribers can withdraw up to 60% of their corpus tax-free while the remaining amount is used to be purchase an annuity.

The scheme also offers the competitive tax treatment compared to the other investment options and make it it attractive for the long-term savings.

About Pension Fund Regulatory and Development Authority

• It is the statutory regulatory body set up under the PFRDA act which was enacted in 2014.
• Its main objective is to promote old-age income security by establishing, developing and regulating the pension funds.
• And also to protect the interests of subscribers to schemes of pension funds and related matters.
• It comes under the jurisdiction of the Ministry of Finance.
• PFRDA is headquartered in New Delhi and also have other regional offices in India.

Question

Q. Which of the following statements is correct about PFRDA members?

1. Members must have knowledge in economics, finance or law
2. At least one member must represent each discipline
3. Members are appointed by RBI

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. All of the above