NPS Returns have surprised everyone and consistently so. Investors into the National Pension Scheme have good reason to be happy about their decision. What has definitely helped are the tax breaks offered by the Govt. of India through Section 80CCD2, so fund size has been growing continuously, and exponentially. NPS comes in different forms and categories, and one is also free to make their own customized asset allocation – and that has helped. Right from Central and State Govt employees to teachers, salaried individuals, self-employed, businessmen and corporate hi-fliers, nearly everyone is joining the NPS bandwagon. In a way, NPS has gotten funds which would have typically stayed idle in bank FDs, into the equity market. Having said that, the current penetration is far beyond actual potential.
Let’s now have a look at the NPS returns for all categories of funds and all fund managers.
indicates the highest return in each time horizon.
| NPS Returns* for Central Government Plans | Ultra Safe, Conservative | ||||
|---|---|---|---|---|---|
| Applicable for Central Government Employees only | Portion invested in Equities = 8-12% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| LIC Pension Fund | 18,161 | 9.07 | 12.81 | 13.10 | 11.56 |
| SBI Pension Fund | 21,231 | 9.09 | 12.91 | 13.24 | 11.55 |
| UTI Retirement Solutions | 19,571 | 9.32 | 13.06 | 13.02 | 11.41 |
| NPS Returns* for State Government Plans | Ultra Safe, Conservative | ||||
|---|---|---|---|---|---|
| This plan is applicable for State Government Employees only. | Portion invested in Equities = 7-11% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| LIC Pension Fund | 24,519 | 9.16 | 12.70 | 13.22 | 11.84 |
| SBI Pension Fund | 25,050 | 9.23 | 13.10 | 13.47 | 11.82 |
| UTI Retirement Solutions | 24,229 | 9.38 | 13.08 | 13.11 | 11.67 |
| NPS Returns* for Swavalamban Plans (NPS Lite) | Highly Safe, Conservative | ||||
|---|---|---|---|---|---|
| Micro-pension for the economically disadvantaged | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| Kotak Pension Fund | 39 | 8.84 | 12.71 | 13.15 | 11.11 |
| LIC Pension Fund | 733 | 9.22 | 12.94 | 13.21 | 11.83 |
| SBI Pension Fund | 1,055 | 9.29 | 13.00 | 13.26 | 11.95 |
| UTI Retirement Solutions | 721 | 9.45 | 12.88 | 13.12 | 11.71 |
| NPS Returns* for Corporate (Central Govt. Pattern) | Highly Safe, Conservative | ||||
|---|---|---|---|---|---|
| Central Govt. model for Corporate Employees | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| LIC Pension Fund | 1,287 | 10.00 | 13.52 | 13.41 | – |
| SBI Pension Fund | 7,355 | 9.35 | 13.22 | 13.52 | – |
| NPS Returns* for Tier I – Scheme E (Equities) | High Risk, Aggressive | ||||
|---|---|---|---|---|---|
| Investments in predominantly equity market instruments | Portion invested in Equities= up to 75% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| HDFC Pension Fund | 244 | 12.93 | 9.59 | 13.00 | – |
| ICICI Prudential Pension Fund | 355 | 10.77 | 7.87 | 12.59 | 12.12 |
| Kotak Pension Fund | 63 | 13.24 | 10.74 | 13.31 | 12.59 |
| LIC Pension Fund | 152 | 12.13 | 8.41 | 12.01 | – |
| Reliance Capital Pension Fund | 46 | 11.16 | 7.36 | 12.14 | 11.43 |
| SBI Pension Fund | 730 | 12.79 | 9.53 | 12.82 | 12.43 |
| UTI Retirement Solutions | 86 | 13.56 | 10.29 | 13.79 | 12.36 |
| NPS Returns* for Tier I – Scheme C (Corporate Debt) | Moderate Risk, Conservative | ||||
|---|---|---|---|---|---|
| Investments in fixed income instruments other than Government securities | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| HDFC Pension Fund | 160 | 7.49 | 12.16 | 12.60 | – |
| ICICI Prudential Pension Fund | 255 | 7.69 | 12.21 | 12.79 | 12.19 |
| Kotak Pension Fund | 49 | 7.81 | 12.61 | 12.63 | 12.09 |
| LIC Pension Fund | 97 | 7.27 | 11.93 | 12.3 | – |
| Reliance Capital Pension Fund | 33 | 7.44 | 11.99 | 12.39 | 11.86 |
| SBI Pension Fund | 525 | 7.50 | 12.05 | 12.29 | 11.88 |
| UTI Retirement Solutions | 56 | 7.38 | 12.07 | 12.13 | 11.47 |
| NPS Returns* for Tier I – Scheme G (Govt. Bonds) | Highly Safe, Conservative | ||||
|---|---|---|---|---|---|
| Investments in Government securities. | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| HDFC Pension Fund | 201 | 10.19 | 14.55 | 13.66 | – |
| ICICI Prudential Pension Fund | 296 | 10.24 | 14.49 | 14.05 | 11.99 |
| Kotak Pension Fund | 66 | 10.50 | 15.40 | 13.98 | 11.82 |
| LIC Pension Fund | 105 | 10.21 | 14.01 | 13.94 | – |
| Reliance Capital Pension Fund | 48 | 10.28 | 14.80 | 14.01 | 11.82 |
| SBI Pension Fund | 985 | 10.16 | 14.62 | 14.08 | 11.70 |
| UTI Retirement Solutions | 85 | 9.71 | 14.05 | 13.76 | 11.48 |
| NPS Returns* for Tier II – Scheme E (Equities) | High Risk, Aggressive | ||||
|---|---|---|---|---|---|
| Investments in predominantly equity market instruments | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| HDFC Pension Fund | 6 | 13.45 | 10.28 | 11.04 | – |
| ICICI Prudential Pension Fund | 27 | 10.74 | 7.81 | 12.58 | 11.61 |
| Kotak Pension Fund | 6 | 13.04 | 10.60 | 13.13 | 12.55 |
| LIC Pension Fund | 2 | 13.00 | 8.46 | 7.79 | – |
| Reliance Capital Pension Fund | 6 | 11.01 | 7.26 | 12.07 | 11.43 |
| SBI Pension Fund | 33 | 12.78 | 9.34 | 12.93 | 12.34 |
| UTI Retirement Solutions | 8 | 12.07 | 8.28 | 13.86 | 12.15 |
| NPS Returns* for Tier II – Scheme C (Corporate Debt) | Moderate Risk, Conservative | ||||
|---|---|---|---|---|---|
| Investments in fixed income instruments other than Government securities | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| HDFC Pension Fund | 6 | 7.76 | 12.44 | 10.52 | – |
| ICICI Prudential Pension Fund | 27 | 7.57 | 12.09 | 12.67 | 11.98 |
| Kotak Pension Fund | 4 | 7.78 | 11.99 | 12.18 | 11.46 |
| LIC Pension Fund | 2 | 8.04 | 12.61 | 11.15 | – |
| Reliance Capital Pension Fund | 3 | 7.10 | 11.39 | 12.09 | 11.19 |
| SBI Pension Fund | 29 | 7.39 | 11.83 | 12.20 | 11.19 |
| UTI Retirement Solutions | 6 | 7.07 | 11.87 | 12.02 | 11.40 |
| NPS Returns* for Tier II – Scheme G (Govt. Bonds) | Highly Safe, Conservative | ||||
|---|---|---|---|---|---|
| Investments in Government securities | Portion invested in Equities = 10-15% | ||||
| Fund | Assets
( crores)
|
% Returns (Annualized) | |||
| Last 6 mths | Last 1 yr | Last 3 yr | Last 5 yr | ||
| HDFC Pension Fund | 5 | 10.20 | 14.67 | 13.99 | – |
| ICICI Prudential Pension Fund | 25 | 10.16 | 14.54 | 14.00 | 12.05 |
| Kotak Pension Fund | 6 | 9.95 | 14.89 | 13.86 | 11.58 |
| LIC Pension Fund | 2 | 9.60 | 13.57 | 14.25 | – |
| Reliance Capital Pension Fund | 4 | 10.41 | 15.03 | 14.07 | 11.91 |
| SBI Pension Fund | 33 | 10.15 | 14.64 | 14.10 | 11.63 |
| UTI Retirement Solutions | 7 | 9.82 | 14.36 | 13.93 | 11.46 |
* NPS returns have been calculated on the basis of Net Asset Value (NAV) declared for the schemes by the Pension Funds. NPS Returns are shown as on Nov 3, 2016. Assets are as on Sep 30, 2016. Data source : National Pension System Trust, npstrust.org.in. Please note that past performance does not guarantee future results/returns and the likelihood of future investment outcomes are entirely hypothetical in nature. MintWise does not offer any advisory/enrollment /subscription services on NPS.
NPS Returns – How to Maximize Value
- Firstly, maximizing value does not mean maximizing NPS returns. There is a certain amount of risk associated with any investing. Check the rewards you get vis-a-vis the risk you take when you invest in a particular fund and then gauge what is optimal for you.
- It is not that you need to choose a specific fund only. You are allowed to invest different percentages of your total investments into different kinds of funds. e.g. 20% into Scheme G, 30% into Scheme C and 50% into Scheme E. This helps create the balance in asset allocation that you seek to achieve.
- It is strongly recommended that you make monthly investments instead of yearly/one-time investments. This way you can take the advantage of Rupee-Cost Averaging.
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Yes, you could, Rakesh. The fund choice would be entirely yours.