Motilal Oswal AMC gets PFRDA approval to sponsor pension fund under NPS

Motilal Oswal Asset Management Company Ltd. (MOAMC) has received approval from the Pension Fund Regulatory and Development Authority (PFRDA) to act as a sponsor of a pension fund under the National Pension System (NPS), marking the company’s entry into India’s growing retirement-focused investment space.

The approval allows the asset manager to establish a separate pension fund entity that will manage NPS contributions and pension assets in accordance with the PFRDA Act, 2013, and related regulations.

The development comes at a time when India’s pension and retirement planning market is witnessing steady growth, driven by rising financial awareness, increasing participation in market-linked retirement products, and a gradual shift among investors from traditional savings toward long-term wealth creation instruments.

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According to the company, MOAMC will now undertake the remaining regulatory formalities, including obtaining the certificate of registration and executing agreements with the NPS Trust and other intermediaries before commencing full-scale pension fund operations.

Prateek Agrawal, Managing Director and CEO of Motilal Oswal Asset Management Company, said the move aligns with the evolving needs of India’s financial ecosystem and growing demand for structured retirement planning solutions.

“As India’s financial ecosystem evolves, the need for disciplined, long-term retirement investment and planning is becoming critical for long-term financial security,” Agrawal said.

He added that increasing investor participation in NPS reflects a broader shift in financial behaviour.

“As Indians shift their financial habits moving from a saver to an investor mindset, NPS inflows have also been growing steadily,” he said. “Through our entry into India’s NPS ecosystem, we aim to bring a research-driven, high-conviction, and long-term investment approach, focused on delivering consistent performance for investors to build sustainable retirement wealth.”

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The National Pension System has emerged as one of India’s key long-term retirement savings products over the past decade, attracting participation from salaried employees, self-employed individuals, and corporate subscribers due to its tax benefits, low-cost structure, and market-linked returns.

Industry experts expect competition in the pension fund management segment to intensify as asset management companies seek to expand beyond traditional mutual fund offerings and tap into India’s underpenetrated retirement savings market.

Motilal Oswal Group has a legacy of more than three decades in equity investing. Incorporated in 2008, MOAMC currently manages mutual funds, alternative investment funds (AIFs), and portfolio management services for domestic and international investors.

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