PPFAS Asset Management gets PFRDA approval to launch pension fund under NPS
The will now manage retirement savings via a dedicated pension fund, leveraging NPS tax benefits and long-term growth potential.
MUMBAI: PPFAS Asset Management Pvt. Ltd received approval from the Pension Fund Regulatory and Development Authority (PFRDA) on Wednesday to become a sponsor for a pension fund under the National Pension System (NPS).
The company will soon begin managing the retirement savings of individuals investing through NPS. To facilitate this, it will establish a separate pension fund company that will operate the schemes and aim to grow these savings over the long term.
Commenting on the development, Neil Parag Parikh, chairman and chief executive of PPFAS Asset Management, said, “Managing retirement savings is a significant responsibility, and we are committed to handling it with care, discipline, and a long-term approach. Our focus will remain on safeguarding investors’ interests while delivering consistent performance.”
The company will now complete the necessary formalities, including registration and operational setup of the pension fund, before commencing full-scale operations.
Parikh noted that recent changes in the NPS framework have made this space increasingly attractive for launching new products. While both mutual funds (MFs) and NPS play important roles in investors’ portfolios, they serve different financial objectives. He told Mint that NPS is primarily designed for disciplined, long-term retirement savings, whereas mutual funds offer greater flexibility and can be used for wealth creation, liquidity management, and a variety of other financial goals.
He also highlighted the tax advantages of NPS. “At maturity, up to 60% of the corpus can be withdrawn tax-free, making it a more tax-efficient option for retirement planning. Mutual funds, on the other hand, are subject to long-term capital gains (LTCG) tax upon withdrawal,” Parikh said.
Other notable features of NPS include a lower cost structure compared with mutual funds, which can meaningfully enhance long-term compounding, a lock-in period that reinforces retirement discipline, and a requirement to use a portion of the corpus to purchase an annuity, providing a predictable income stream post-retirement, he added.
Currently, ten asset management companies operate NPS – Aditya Birla Sun Life Asset Management Co., Axis Asset Management Co., DSP Asset Managers, HDFC Asset Management Co., ICICI Prudential Asset Management Co., Kotak Asset Management Co., LIC Asset Management Co., SBI Funds Management, Tata Asset Management Co., and UTI Asset Management Co.
PPFAS Asset Management reported average assets under management of ₹1.5 trillion between January and March 2026.
Parikh added that the company’s core investment approach remains unchanged, with a continued focus on protecting against downside risk while delivering reasonable long-term returns.
About the Authors
Jash Kriplani is a seasoned journalist based in Mumbai with more than 15 years of experience across some of India’s leading publications, covering personal finance and investments. Over the years, he has developed a strong reputation for breaking down several complex financial concepts into clear, accessible insights for everyday investors, with a particular focus on helping individuals make informed decisions about their money.<br><br>Jash has consistently written with a reader-first approach, blending storytelling with practical guidance. His work often reflects a deep understanding of investor behaviour, market cycles, and the evolving financial landscape in India, while staying grounded in data-driven insights and the real-world context.<br><br>He is also a Certified Financial Planner (CFP), having earned the credential from the Financial Planning Standards Board Ltd, USA. This professional training complements his journalistic work, allowing him to bring a deeper perspective to his writing. Through his work, he aims to bridge the gap between financial theory and real-world application for Indian investors, empowering them to build sustainable, long-term wealth.<br><br>In his free time, he likes to read and spend time with family.
Ananya is a journalist with over four years of experience, specialising in stock markets and personal finance. Currently working with the Mint Money team, she focuses on simplifying complex financial concepts to help readers make informed decisions about their money. Her work spans market trends, regulatory and policy developments, and in-depth analytical stories that decode shifts in India’s financial landscape. She has consistently covered key developments in the stock market, combining data-driven insights with on-ground reporting to provide clarity and context. <br><br>Before joining Mint, Ananya worked with Financial Express, NDTV Profit, and Informist, where she built a strong foundation in reporting, writing, and editing across fast-paced news environments. Her expertise lies in translating intricate financial and policy matters into accessible, reader-first narratives without compromising on depth or accuracy. Driven by a commitment to impactful and trustworthy journalism, Ananya believes credible financial information is essential for empowering individuals in an increasingly complex economic environment. A Delhiite now based in Mumbai, she brings a keen observational lens to both her reporting and everyday life. Outside of work, she enjoys reading, writing poetry, and people-watching.
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