India’s pension fund regulator is working on a scheme that may potentially offer minimum assured returns, according to a report in The Times of India, quoting Deepak Mohanty, chairman of the Pension Fund Regulatory and Development Authority (PFRDA).
He says the PFRDA is currently “considering an assured return product” and “will come out with that product soon”.
“However, one would have to see that the returns are attractive,” Mohanty is quoted as saying in the report published on June 9. “That is very much in the works…There we have to balance risk and return.”
He did not provide a timeline for the launch. Spokespersons for PFRDA did not immediately respond to questions from Asia Asset Management.
According to data published on the regulator’s website, pension funds generated annual returns ranging between 5.16% and 27.89% over the past three years. It didn’t provide an analysis of the funds’ performance.
India’s pension industry had 7.36 trillion rupees (US$89.33 billion) of assets under management as of end-March 2022, according to the PFRDA’s most recent annual report.
