October 5, 2022

Allocation to midcap shares apart, tax advantages beneath Part 80C and Subsection 80CCD (1B) additionally make Nationwide Pension System engaging

August 31, 2022 / 02:10 PM IST

The Pension Fund Regulatory and Improvement Authority (PFRDA) has been proactive in establishing Nationwide Pension System (NPS) as a rival to different well-regulated funding autos akin to mutual funds. For one, it allowed NPS managers to spend money on midcap shares by widening the funding universe to prime 200 shares by market capitalisation in July 2021. Earlier, managers had been restricted to round 100 large-cap shares traded within the Futures & Choices market, having a market cap of not less than Rs 5,000 crore.

The next rung of 100 stocks are midcaps wherein the NPS managers started adding positions since then. While most of these NPS equity schemes underperformed the broader indices so far, such allocation to midcaps is likely to help them to outpace their benchmarks going ahead. Below are the lists of midcap stocks held by the seven NPS managers in their portfolio of Scheme-E under Tier-1 account. As per the latest data, these seven schemes invested about Rs 1,592 crore in midcap stocks (about 5% of the total Tier-I equity AUM). Portfolio data were of July 31, 2022. Source: websites of the respective NPS managers.

The subsequent rung of 100 shares are midcaps the place the managers began including positions since July 2021. Whereas most NPS fairness schemes have underperformed broader indices to this point, such allocation to midcaps is probably going to assist them outpace their benchmarks going forward. Under are the lists of midcap shares held by seven NPS managers of their portfolio of Scheme-E beneath Tier-1 account. As per newest knowledge, these schemes invested about Rs 1,592 crore in midcap shares (about 5 % of the whole Tier-I fairness belongings beneath administration). Portfolio knowledge is as of July 31, 2022. Supply: Web sites of the NPS managers.

Aditya Birla Sun Life Pension Fund - Scheme E.  Corpus as of July 31, 2022: Rs 253 crore  Allocation to large-cap stocks: Rs 231 crore  Allocation to mid-cap stocks: Rs 12 crore  5-year return (CAGR): 12.4%

Aditya Birla Solar Life Pension Fund – Scheme E.
Corpus as of July 31, 2022: Rs 253 crore
Allocation to large-cap shares: Rs 231 crore
Allocation to mid-cap shares: Rs 12 crore
5-year return (CAGR): 12.4%

HDFC Pension Fund - Scheme E Corpus as of July 31, 2022: Rs 14,257 crore Allocation to large-cap stocks: Rs 13,010 crore Allocation to mid-cap stocks: Rs 629 crore 5-year return (CAGR): 13.3%

HDFC Pension Fund – Scheme E
Corpus as of July 31, 2022: Rs 14,257 crore
Allocation to large-cap shares: Rs 13,010 crore
Allocation to mid-cap shares: Rs 629 crore
5-year return (CAGR): 13.3%

ICICI Prudential Pension Fund - Scheme E Corpus as of July 31, 2022: Rs 4,952 crore Allocation to large-cap stocks: Rs 4,460 crore Allocation to mid-cap stocks: Rs 229 crore 5-year return (CAGR): 12.8%

ICICI Prudential Pension Fund – Scheme E
Corpus as of July 31, 2022: Rs 4,952 crore
Allocation to large-cap shares: Rs 4,460 crore
Allocation to mid-cap shares: Rs 229 crore
5-year return (CAGR): 12.8%

Kotak Pension Fund - Scheme E Corpus as of July 31, 2022: Rs 930 crore Allocation to large-cap stocks: Rs 825 crore Allocation to mid-cap stocks: Rs 70 crore 5-year return (CAGR): 12.1%

Kotak Pension Fund – Scheme E
Corpus as of July 31, 2022: Rs 930 crore
Allocation to large-cap shares: Rs 825 crore
Allocation to mid-cap shares: Rs 70 crore
5-year return (CAGR): 12.1%

LIC Pension Fund - Scheme E Corpus as of July 31, 2022: Rs 2,717 crore Allocation to large-cap stocks: Rs 2,426 crore Allocation to mid-cap stocks: Rs 166 crore 5-year return (CAGR): 12%

LIC Pension Fund – Scheme E
Corpus as of July 31, 2022: Rs 2,717 crore
Allocation to large-cap shares: Rs 2,426 crore
Allocation to mid-cap shares: Rs 166 crore
5-year return (CAGR): 12%

SBI Pension Fund - Scheme E Corpus as of July 31, 2022: Rs 9,022 crore Allocation to large-cap stocks: Rs 8,369 crore Allocation to mid-cap stocks: Rs 377 crore 5-year return (CAGR): 12.2%

SBI Pension Fund – Scheme E
Corpus as of July 31, 2022: Rs 9,022 crore
Allocation to large-cap shares: Rs 8,369 crore
Allocation to mid-cap shares: Rs 377 crore
5-year return (CAGR): 12.2%

UTI Retirement Solutions Pension Fund - Scheme E Corpus as of July 31, 2022: Rs 1,312 crore Allocation to large-cap stocks: Rs 1,151 crore Allocation to mid-cap stocks: Rs 109 crore 5-year return (CAGR): 12.6%

UTI Retirement Options Pension Fund – Scheme E
Corpus as of July 31, 2022: Rs 1,312 crore
Allocation to large-cap shares: Rs 1,151 crore
Allocation to mid-cap shares: Rs 109 crore
5-year return (CAGR): 12.6%

Dhuraivel Gunasekaran

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