PPFAS Asset Management Gets PFRDA Nod to Sponsor Pension Fund Under NPS

PPFAS Asset Management has received approval from the Pension Fund Regulatory and Development Authority (PFRDA) to act as a sponsor for a pension fund under the National Pension System (NPS), as per PTI reports.  

The approval allows the firm to enter the pension fund segment, which deals with managing long-term retirement savings. 

Next Steps for Operations 

The company said it will complete procedural requirements before starting operations. This includes registering the pension fund entity, setting up systems, and meeting compliance conditions.  

Once these steps are in place, the firm will begin managing subscriber funds under the NPS. A separate pension fund company will be formed for this purpose, in line with regulatory norms. 

Structure of the Pension Business 

The proposed pension fund entity will manage schemes offered under the NPS. It will invest contributions across asset classes permitted by regulations, including equities, government securities, and corporate bonds.  

The aim is to manage these funds over a long investment horizon typical of retirement products. 

Background of PPFAS Asset Management 

PPFAS Asset Management was set up in 2011 and is part of the PPFAS group. The group originates from Parag Parikh Financial Advisory Services Ltd., established in 1992.  

The firm has primarily been involved in mutual funds and investment management, focusing on long-term investing. 

Statement from the Company 

Neil Parag Parikh, Chairman and Chief Executive Officer, said the firm views retirement fund management as a long-term responsibility.  

He noted that the approach will be based on discipline and consistency, with attention to investor interests. 

Read More: Japan’s Daikin to Invest ₹1,000 Crore in India for Global R&D Centre! 

Conclusion 

The approval is the company’s entry into pension fund sponsorship under the NPS. Operations are expected to begin after completion of registration and operational formalities. 

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