NPS Tier I Returns Signal Performance of Pension Fund Managers

National Pension System (NPS) Tier I Scheme Performance Update

Key Figures:

• Returns on NPS Tier I schemes: up to 17.38% (equity funds)
• Returns on government bonds: up to 8.88%
• Returns on corporate bonds: up to 8.63%

Overview

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The latest National Pension System Trust (NPS) data shows mixed returns across asset classes and time horizons for NPS Tier I schemes. Equity funds delivered the highest returns, while government securities funds offered relatively steadier returns across tenures.

Scheme E-Equities (Tier I)

• Risk level: high
• Top performers:
  • ICICI Prudential Pension Fund: 17.38% returns in the three-year category
  • Kotak Mahindra Pension Fund: consistent performance
  • HDFC Pension Fund: consistent performance
  • Tata Pension Fund: consistent performance
  • UTI Pension Fund: consistent performance
• Weakest performer: SBI Pension Fund

Scheme C-Corporate Bonds (Tier I)

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• Risk level: moderate
• Top performers:
  • HDFC Pension Fund: 8.63% returns over seven years
  • ICICI Pension Fund: consistent performance
  • Aditya Birla Pension Fund: consistent performance
  • SBI Pension Fund: consistent performance
  • UTI Pension Fund: consistent performance
• Weakest performer: LIC Pension Fund

Scheme G-Government Bonds (Tier I)

• Risk level: low
• Top performers:
  • Aditya Birla Sun Life Pension Fund: consistent performance
  • LIC Pension Fund: 8.88% returns in the 10-year category
  • SBI Pension Fund: consistent performance
  • UTI Pension Fund: consistent performance
  • HDFC Pension Fund: consistent performance
• Weakest performer: Kotak Pension Fund

NPS Tier I Scheme Overview

The National Pension System (NPS) is a government-sponsored retirement fund that offers partial withdrawal facilities and can be accessed across schemes for government and corporate sector employees, all citizens, and low-income groups. NPS Tier I schemes require a mandatory retirement account with an age-appropriate asset allocation strategy.