Retirement Planning

UTI emerges largest pension fund manager


UTI Retirement Solutions has emerged as the country’s largest pension fund manager with the regulator earmarking the highest share of the Rs 8,000 crore corpus to it.

The Pension Fund Regulatory & Development Authority has allocated 34% of the central government corpus to UTI Retirement Solutions, while the fund manager will get to manage 35.5% of the state government corpus.In both the schemes, LIC Pension Fund will get to manage 33.5% of the corpus while SBI Pension Funds will be responsible for 32.5% of the central government pension scheme and 31% of the states pension scheme.

The fund management mandate for non-government pension scheme is based on the consumer’s decision. The central government corpus includes the retirement savings of all employees who joined after 2004, while for the states, various governments chose to join the New Pension Scheme over the last few years.While SBI had got majority control of NPS when the scheme started in 2009, its share has shrunk, while LIC’s fortunes have swung. For instance, in the first year, SBI’s share was 55%, followed by 40% for UTI and 5% for LIC.

But based on performance parameters set by the NPS Trust, the share of SBI has declined now to less than one-third of the corpus. Sources said that during the last financial year, UTI was the top performer in five of the nine schemes and that helped it acquire a greater share of the business.This year onwards, the corpus is expected to grow faster as more states are now part of NPS and some such as West Bengal and Kerala that had stayed away during Left rule might opt to join it now.The new allocation will be applicable from July 1.

Also Read : Wake up Sid

Also Read : Retire Rich with just Rs 40 a day

Also Read : Tips to plan your retirement

Categories: Retirement Planning

Tagged as: , ,

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s