What is NPS and Why Does Fund Manager Selection Matter? List of Renowned NPS Fund Managers in India Top Performing NPS Fund Managers in India (2024) How to Choose the Best NPS Fund Manager? |
Planning for retirement is one of the most critical financial decisions you’ll ever make, and the National Pension System (NPS) is one of the best government-backed pension plans in India. With its structured investment approach, tax benefits, and long-term wealth creation, NPS has emerged as a preferred choice for those looking for financial security in their golden years.
However, the best NPS scheme for you largely depends on the NPS fund manager performance. Choosing the best NPS fund manager can significantly impact your retirement corpus, as different fund managers generate different returns based on their investment strategies. In this guide, we will compare India’s top NPS fund managers, analyse their NPS scheme returns, and help you make an informed decision.
What is NPS and Why Does Fund Manager Selection Matter?
The National Pension System (NPS) is a long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Under NPS, investors contribute regularly to build a retirement corpus, which can later be used to provide a stable post-retirement income.
However, the success of your NPS investments depends on the NPS fund manager performance. A fund manager decides how to allocate your money across different asset classes, including:
- Equity (Scheme E): Investments in the stock market for high returns.
- Corporate Bonds (Scheme C): Investments in company-issued bonds for moderate returns.
- Government Securities (Scheme G): Investments in government bonds for stable but low-risk returns.
- Alternative Assets (Scheme A): Investments in infrastructure and other alternative options.
Choosing the best National Pension Scheme fund manager ensures that your investments are handled by professionals who understand market trends and know how to maximise returns while managing risks.
| Also Read: NPS Returns vs Other Investments |
List of Renowned NPS Fund Managers in India
India has several fund managers managing NPS investments. Each of them has different investment strategies, expertise, and track records. Here are the top NPS fund managers you should consider:
1. Aditya Birla Sun Life Pension Management Ltd
Aditya Birla Sun Life is one of the leading names in India's financial sector and is known for its strong equity and debt investment strategies. Their best NPS scheme focuses on providing long-term capital appreciation with a well-diversified portfolio.
2. Axis Pension Fund Management Limited
Axis Pension Fund is a relatively newer player but has shown promising growth. Their NPS fund manager performance indicates a well-balanced approach focusing on corporate bonds and equities.
3. HDFC Pension Management Co. Ltd
HDFC Pension Fund is one of the most trusted names in the financial sector. It consistently delivers stable returns, and its performance is considered one of the most reliable among fund managers.
4. ICICI Prudential Pension Fund Management Co. Ltd
ICICI Prudential has shown competitive returns in equity and debt portfolios, making it a strong contender.
5. Kotak Mahindra Pension Fund Ltd
Kotak Mahindra Pension Fund is known for its solid investment expertise, particularly in corporate bonds and government securities. It offers a balanced investment strategy suitable for risk-averse investors.
6. LIC Pension Fund Ltd
LIC Pension Fund is managed by Life Insurance Corporation of India, the country’s largest insurance provider. This fund is highly reliable for investors who prefer low-risk investments with stable returns.
7. Max Life Pension Fund Management Limited
Max Life Pension Fund is gaining popularity for its consistent growth in NPS scheme returns. While relatively new, it offers a good mix of equity and debt investment options.
8. SBI Pension Funds Pvt. Ltd
SBI Pension Fund, one of India’s oldest managers, has a long track record of market-linked returns.
9. Tata Pension Management Pvt. Ltd
Tata Pension Fund is relatively new but has been showing strong potential in terms of returns and risk management. It focuses on a balanced investment approach.
10. UTI Retirement Solutions Ltd
UTI Pension Fund is a well-known fund house in India that strongly focuses on government securities and corporate bonds. It has generated steady returns over the years.
11. DSP Pension Fund Managers Private Limited
DSP is another growing pension fund manager in India, focusing on market-linked returns. While not as established as others, it has delivered decent results.=
Top Performing NPS Fund Managers in India (2024)
Below is a comparative analysis of the best NPS fund managers based on their performance across different schemes:
1. NPS Tier-I Scheme A (Government Bonds & Debt Instruments)
This scheme primarily invests in government securities and is ideal for risk-averse investors.
| Pension Fund Manager | NAV | Returns (1 Year) | Returns (3 Years) | Returns (5 Years) | Returns (7 Years) |
| Aditya Birla Sun Life | 15.77% | 10.38% | 7.33% | 6.25% | 6.54% |
| HDFC Pension | 18.97% | 11.20% | 8.71% | 8.48% | 8.81% |
| ICICI Prudential | 17.04% | 11.73% | 7.25% | 6.74% | 7.26% |
| Kotak Mahindra | 16.85% | 11.95% | 6.18% | 6.63% | 7.09% |
| SBI Pension Funds | 19.38% | 13.37% | 7.39% | 9.26% | 9.13% |
Key Insights: SBI Pension Fund has outperformed others with 13.37% returns in one year. HDFC NPS interest rate has remained consistent over a 5-year period, making it a strong contender.
2. NPS Tier-I Scheme C (Corporate Bonds)
This scheme invests in high-quality corporate debt instruments and provides stable returns.
| Pension Fund Manager | NAV | Returns (1 Year) | Returns (3 Years) | Returns (5 Years) | Returns (7 Years) |
| Aditya Birla Sun Life | 17.83% | 8.14% | 6.26% | 7.52% | 8.03% |
| HDFC Pension | 26.50% | 8.40% | 6.39% | 7.76% | 7.74% |
| ICICI Prudential | 40.00% | 8.08% | 6.15% | 7.25% | 7.45% |
| Kotak Mahindra | 38.30% | 8.15% | 6.14% | 6.70% | 6.94% |
| SBI Pension Funds | 40.09% | 8.07% | 6.08% | 7.39% | 7.44% |
Key Insights: ICICI NPS interest rate is performing well in this category. SBI Pension Funds also shows a strong return potential over the long term.
3. NPS Tier-I Scheme E (Equity)
This scheme is for investors seeking aggressive growth and willing to take risks by investing in the stock market.
| Pension Fund Manager | NAV | Returns (1 Year) | Returns (3 Years) | Returns (5 Years) | Returns (7 Years) |
| Aditya Birla Sun Life | 28.77% | 33.38% | 19.90% | 19.96% | 15.37% |
| HDFC Pension | 53.61% | 34.22% | 19.25% | 20.22% | 15.89% |
| ICICI Prudential | 73.43% | 37.56% | 20.97% | 20.90% | 15.98% |
| Kotak Mahindra | 67.12% | 36.81% | 20.40% | 20.56% | 15.55% |
| SBI Pension Funds | 58.36% | 32.18% | 19.23% | 18.93% | 14.96% |
Key Insights: ICICI Prudential and HDFC Pension Fund are among the best NPS fund managers in the equity segment.
4. NPS Tier-II Scheme E
This scheme is an open-ended investment with no lock-in period, providing high returns.
| Pension Fund Manager | NAV | Returns (1 Year) | Returns (3 Years) | Returns (5 Years) | Returns (7 Years) |
| Aditya Birla Sun Life | 28.83% | 34.13% | 19.80% | 19.61% | 15.77% |
| HDFC Pension | 46.28% | 34.25% | 19.31% | 20.22% | 16.74% |
| ICICI Prudential | 57.56% | 36.08% | 20.68% | 20.81% | 15.86% |
| Kotak Mahindra | 67.12% | 36.81% | 20.40% | 20.56% | 15.55% |
| SBI Pension Funds | 58.36% | 32.18% | 19.23% | 18.93% | 14.96% |
Key Insights: ICICI NPS interest rate continues to shine in this segment, delivering 36.08% returns in one year.
| Also Read: NPS Tier 1 vs. 2 Guide |
How to Choose the Best NPS Fund Manager?
Selecting the best NPS fund manager is crucial for ensuring that your retirement savings grow steadily and securely. Here are four key factors you should consider before making your decision:
1. Historical Performance
The best NPS fund manager should have a strong track record of delivering consistent returns over different time periods —1 year, 3 years, 5 years, and beyond. By analysing past performance, you can understand how a fund manager navigates market ups and downs. While past returns do not guarantee future performance, a steady history of good returns indicates the fund manager’s ability to manage risks and maximise gains.
2. Risk Appetite
Every investor has a different risk tolerance. If you prefer high returns and can handle market fluctuations, selecting an equity-heavy NPS fund manager might be ideal. However, if you are a conservative investor looking for stable returns, a fund manager focusing on government securities or corporate bonds may be a better fit. The best NPS fund manager will align their investment strategy with your risk profile for long-term growth.
3. Asset Allocation
Each NPS fund manager follows a unique investment strategy. Some prioritise equity investments for aggressive growth, while others focus on corporate bonds or government securities for stable but lower returns. Choosing the best NPS fund manager depends on how well their asset allocation strategy aligns with your financial goals. A well-balanced mix of equity, debt, and government securities ensures both growth and stability in your retirement corpus.
4. Fund Manager’s Reputation
The best NPS fund manager is not just about high returns but reliability, expertise, and consistency. Before selecting one, research their credibility, experience, and performance consistency over the years. A reputable fund manager ensures your investments are handled professionally, minimises risks, and makes informed investment decisions. Always check reviews, fund performance reports, and ratings to make the best choice for your NPS scheme investments.
| Also Read: NPS for Retirees |
NPS Fund Calculator: Estimating Your Retirement Corpus
An NPS calculator is an essential tool that helps investors estimate the potential corpus they can accumulate by the time they retire. Since NPS returns are market-linked and depend on the chosen best NPS fund manager, the calculator considers multiple factors, including:
- Your Age – Determines the investment duration before retirement.
- Monthly Investment (Contribution Amount) – The amount you invest regularly.
- Expected Rate of Return – Based on the past performance of the NPS fund manager performance.
- Annuity Percentage – The portion of the corpus used to purchase an annuity for post-retirement income.
Using an NPS calculator allows you to visualise different investment scenarios and select the best NPS fund manager based on expected returns.
The Bottom Line
Choosing the best NPS fund manager is crucial for maximising your retirement savings and ensuring long-term financial security. Each fund manager has a different investment strategy, risk profile, and return potential. Whether you prioritise stable returns with government securities or higher growth through equities, selecting the right fund manager can make a significant difference.
Before investing, always analyse past performance, risk factors, and asset allocation. Additionally, use an NPS calculator to estimate your retirement corpus and make an informed decision.
| Also Read: Best Pension Plan in India |
FAQs
1. How do I choose the best NPS fund manager?
To choose the best NPS fund manager, look at their past performance, risk level, investment strategy, and reputation. If you want higher returns, pick a fund manager with strong equity investments. If you prefer stability, go for one that focuses on government bonds.
2. Which NPS fund manager gives the highest returns?
ICICI Prudential and HDFC Pension Fund have shown some of the highest returns, particularly in the equity category. ICICI Prudential recorded 73.43% returns in 1 year for NPS Tier-I Scheme E (Equity), while HDFC Pension delivered 53.61%. Returns can vary by time period and category, so it's important to check the latest performance.
3. Can I change my NPS fund manager?
Yes, you can change your NPS fund manager if you are not satisfied with the performance. You can switch once a year for Tier I accounts and multiple times for Tier II accounts.
4. How can I check my NPS fund returns?
You can check your NPS fund returns on the official site like Protean eGov Technologies. You can also visit your fund manager’s website for the latest performance updates.
Written by Bruhadeeswaran R.
Bruhadeeswaran R. is a B2B content expert with 14+ years of experience, specializing in National Pension System (NPS), PAN, DPI, eSignPro, and Central KYC. As Editor and Lead Content Writer at Protean eGov Technologies, he simplifies complex e-governance topics through engaging blogs, reports, and digital content.
