What is a Pension Fund Manager (PFM)? NPS Returns of Kotak Mahindra PFM: Scheme-Wise Performance Key Features of Kotak Mahindra PFM Benefits of Choosing Kotak Mahindra PFM |
The National Pension System (NPS) offered by Kotak Mahindra is a government-backed retirement savings scheme designed to ensure financial security post-retirement. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), Kotak Mahindra serves as a Point of Presence (PoP) to facilitate seamless account management. With its robust pension fund management (PFM) expertise, Kotak provides flexible investment options, competitive returns, and low-cost structures.
In this article, we explore the specifics of Kotak Mahindra PFM, including its pension payout returns, performance, features, charges, benefits, etc.
What is a Pension Fund Manager (PFM)?
Kotak Mahindra Pension Fund is a certified pension fund manager overseen by the Pension Fund Regulatory and Development Authority (PFRDA). It handles investments across various categories, including Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investments (A). The fund manager strives to maximise returns while ensuring a steady risk balance for sustained growth over the long term.
| Also Read: NPS Retirement Planner |
NPS Returns of Kotak Mahindra PFM: Scheme-Wise Performance
Here’s a detailed comparison of returns across different schemes managed by Kotak NPS:
Table 1: Scheme E - Tier 1 (Equity)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns Inception |
| Returns | 5.11% | 12.87% | 26.35% | 12.16% |
Disclaimer: The data reflects the performance of schemes managed by Kotak Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
Table 2: Scheme E - Tier 2 (Equity)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns Inception |
| Returns | 4.81% | 12.76% | 26.07% | 11.69% |
Disclaimer: The data reflects the performance of schemes managed by Kotak Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
Table 3: Scheme G - Tier 1 (Government Securities)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns Inception |
| Returns | 10.80% | 8.53% | 7.51% | 8.64% |
Disclaimer: The data reflects the performance of schemes managed by Kotak Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
Table 4: Scheme G - Tier 2 (Government Securities)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns Inception |
| Returns | 10.75% | 8.48% | 7.39% | 8.42% |
Disclaimer: The data reflects the performance of schemes managed by Kotak Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
Table 5: Scheme C - Tier 1 (Corporate Bonds)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns Inception |
| Returns | 9.85% | 7.17% | 7.29% | 9.29% |
Disclaimer: The data reflects the performance of schemes managed by Kotak Mahindra Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
Table 6: Scheme C - Tier 2 (Corporate Bonds)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns Inception |
| Returns | 9.49% | 6.95% | 7.20% | 8.66% |
Disclaimer: The data reflects the performance of schemes managed by Kotak Mahindra Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
| Also Read: NPS Return Rate Analysis |
Key Features of Kotak Mahindra PFM
Here are some of the features of the Kotak Mahindra PFM:
1. Fund Management Approach
The fund manager carefully allocates investments based on prevailing market conditions, economic trends, and subscriber risk preferences. This approach emphasises diversification to balance risk and reward, ensuring stability while targeting optimal returns. Kotak’s experienced team conducts thorough research and analysis to adapt to market shifts, making it a reliable choice for retirement planning.
2. AUM Growth Over Time
As of December 31, 2024, Total Assets Under Management reached ₹686,197 crore, a 29% rise from ₹533,365 crore the previous year. Domestic Mutual Fund Equity AUM grew 39% to ₹319,161 crore from December 31, 2023.
| Also Read: NPS Fund Manager Guide |
Benefits of Choosing Kotak Mahindra PFM
Here are four benefits of choosing Kotak Mahindra Pension Fund Manager (PFM):
1. Strong Investment Performance
Kotak Mahindra PFM delivers consistent and competitive returns across its asset classes—Equity, Corporate Bonds, and Government Securities. Its expert fund managers focus on balancing growth and stability, helping subscribers build a solid retirement corpus over time.
2. Steady Returns
Historically, Kotak Mahindra PFM has provided relatively stable returns, minimising the impact of market fluctuations.
Why Choose Kotak Mahindra PFM?
Below are the reasons to choose Kotak Mahindra PFM:
- Kotak Mahindra PFM excels with its proven expertise and reliability, making it a great choice for those seeking a well-rounded retirement savings plan. It manages a growing pension fund with a solid history, delivering dependable returns through a blend of equity, corporate bonds, and government securities customized to suit your risk preferences.
- Another key advantage is its cost-effective structure, keeping expenses low so more of your investment works toward building your future. Kotak’s reputation as a trusted financial name adds confidence, especially for those prioritizing stability alongside growth.
| Also Read: NPS for Secure Future |
Conclusion
Kotak Mahindra Pension Fund Manager (PFM) stands out as a reliable choice for building a secure retirement corpus under the National Pension System (NPS). With competitive returns across Equity, Corporate Bonds, and Government Securities, it balances growth and stability effectively. Its cost-efficient structure, flexible investment options, and expert fund management cater to diverse risk preferences, ensuring long-term financial security. Backed by a growing AUM of ₹686,197 crore as of December 31, 2024, and a trusted reputation, Kotak PFM offers a compelling blend of performance and dependability, making it an excellent option for retirement planning.
FAQs
1. What are the returns of Kotak NPS Scheme E - Tier 1?
As of April 04, 2025, Scheme E - Tier 1 (Equity) offers returns of 5.11% (1 year), 12.87% (3 years), 26.35% (5 years), and 12.16% (since inception), though subject to market fluctuations.
2. How does Kotak PFM ensure steady returns?
Kotak PFM uses a diversified investment approach, adapting to market conditions and subscriber risk preferences, with expert managers focusing on stability and optimal growth.
3. What is the AUM of Kotak Mahindra PFM?
As of December 31, 2024, Kotak Mahindra PFM’s Total Assets Under Management reached ₹686,197 crore, reflecting a 29% increase from ₹533,365 crore the previous year.
4. Why choose Kotak Mahindra PFM for NPS?
Kotak PFM offers strong performance, low costs, flexible investment options, and a trusted reputation, making it ideal for a secure and growth-oriented retirement plan.
