Max Life Pension Fund Management (MLPFM), a subsidiary of Max Life Insurance, is eyeing assets under management (AUM) of ₹15,000 crore over the next five years, said Prashant Tripathy, Managing Director and CEO of Max Life Insurance.
“We have started our pension fund management business on a strong note. So far we have made ₹24 crore in AUM. We want to reach ₹15,000 crore in five years, and we are targeting ₹1 lakh crore in the next 10 years,” Tripathy said. Line of business.
Last August, MLPFM obtained the certificate of start of operations from the pension regulator Pension Fund Regulation and Development Authority (PFRDA).
Tripathy highlighted that MLPFM has a team, along with a full-fledged CEO, and is ready to take advantage of the growth opportunities in the pension sector.
“We are hiring a large number of people. Let’s go to the institutions. We just released a PoP license. We are now a full package provider – we have fund management businesses, annuity service provider and now we have a PoP presence,” he added.
Established with an initial capital of ₹50 crore, MLPFM manages pension assets with investment options under the National Pension System (NPS).
NSP growth
Currently, there are ten PFRDA-approved pension fund managers in the country. As many as three new players, Max Life, Tata Pension Fund Management and Axis, entered pension fund management last year and started operations. One more player, DSP Group had received a conditional license, but had not started trading yet.
In the past two decades, there has been robust growth in the National Pension System (NPS), which has exceeded ₹8.5 lakh crore and grown at a CAGR of 30 per cent.
To encourage broader participation, the PFRDA had also provided incentives for private participants in the retirement space, providing more flexibility on fees that were low until recently.
Although India’s pension assets relative to GDP remain low, economic watchers expect the country’s overall retirement space to move quickly.
The percentage of Indian people aged 60 and over was 9.9% in 2020. It was 7.8% in 2010 and is expected to increase by just 300 basis points in 10 more years. There is a demographic change and more and more people are expected to retire in the coming years.
