Many people prioritise planning for a secure and comfortable retirement. In India, the National Pension System (NPS) is a government-backed initiative designed to provide a stable platform for the accumulation of retirement savings. Under the NPS, pension money is managed by different pension fund managers (PFMs) to maximise growth and safety. One important PFM is SBI Pension Funds Private Limited (SBI PFM).
The blog intends to feature in-depth details of SBI PFM in terms of pension returns, performance, features, and benefits to assist you with your retirement planning.
What is a Pension Fund Manager (PFM)?
A Pension Fund Manager (PFM) oversees retirement savings by investing money in various options like stocks, bonds, government securities, and other assets. For example, the
SBI Pension Fund, approved by the Pension Fund Regulatory and Development Authority (PFRDA), handles these investments. It spreads funds across Equity (stocks), Corporate Bonds, Government Securities, and Alternative Investments to grow wealth over time.
The goal is to earn solid returns while keeping risks in check, ensuring steady growth for people’s retirement. It’s all about balancing safety and profit for the long haul, guided by rules to protect investors.
| Also Read: NPS vs Other Investments |
NPS Returns of SBI PFM: Scheme-Wise Performance
Here’s a detailed comparison of returns across different schemes managed by SBI NPS:
Table 1: Scheme E - Tier 1 (Equity)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Since Inception |
| Returns | -1.47% | 9.64% | 23.08% | 10.82% |
Disclaimer: The data reflects the performance of schemes managed by SBI 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 | 0.87% | 10.42% | 23.73% | 10.84% |
Disclaimer: The data reflects the performance of schemes managed by the SBI 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 | 11.53% | 8.68% | 7.59% | 9.22% |
Disclaimer: The data reflects the performance of schemes managed by the SBI 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 | 11.42% | 8.61% | 7.54% | 9.21% |
Disclaimer: The data reflects the performance of schemes managed by the SBI 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 | 10.01% | 7.25% | 7.68% | 9.61% |
Disclaimer: The data reflects the performance of schemes managed by SBI 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 |
| Return | 9.96% | 7.14% | 7.30% | 9.19% |
Disclaimer: The data reflects the performance of schemes managed by SBI Pension Fund (PFM) as of April 04, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
| Also Read: NPS Retirement Planner |
Key Features of SBI PFM
Understanding the key features of the SBI PFM is essential in choosing the right one. So, let's get started:
- SBI adopts a balanced fund management approach, allocating investments across equity, debt, and government securities. This strategy ensures diversification, aligning with market conditions and individual risk preferences for steady, long-term growth.
- Secondly, SBI PFM has shown remarkable growth in Assets Under Management (AUM), to ₹5.15 lakh crore by March 31, 2025, as per its official records. This reflects a significant multi-fold increase over the decade, underscoring its dominance with a 36% market share in India’s pension fund sector. Backed by the trusted State Bank of India, SBI PFM combines stability, expertise, and consistent performance, making it ideal for secure retirement savings.
Benefits of Choosing SBI PFM
The SBI PFM offers a range of benefits that cater to different investment preferences. Understanding its unique advantages can help you make an informed choice based on your retirement objectives.
- Larger Subscriber Base: SBI PFM has one of the largest subscriber bases among NPS pension fund managers, which indicates investor confidence and widespread acceptance.
- Steady Returns: Historically, SBI PFM has provided relatively stable returns, minimising the impact of market fluctuations.
| Also Read: NPS Retirement Benefits |
Why Choose SBI PFM?
Here are some of the compelling reasons to choose SBI PFM:
- SBI PFM stands out for its stability and reliability, making it an excellent option if you prefer a balanced approach to retirement savings. With a strong track record, it manages one of the largest pension funds in India, offering steady returns through a mix of equity, debt, and government securities tailored to your risk appetite.
- Another reason is its low-cost structure, which ensures more of your money stays invested for growth rather than being eaten up by fees. SBI’s vast experience as a trusted financial institution also brings peace of mind, especially if you value security over aggressive returns.
- Lastly, SBI PFM provides flexibility in investment choices, allowing you to adjust allocations as your needs evolve. This adaptability, combined with consistent performance, makes it ideal for building a secure retirement corpus over time.
Conclusion
SBI Pension Fund Manager (PFM) is a solid pick for retirement planning if you want safety and steady growth. It focuses on stable options like government bonds, which suit people who don’t want big risks. It offers decent returns and tax perks, all while following strict rules. If you’re looking for a dependable way to save for the future without much worry, SBI PFM works well. Just think about your goals and how much risk you’re okay with to see if it fits your needs.
| Also Read: NPS Scheme Benefits |
FAQs
1. What is SBI Pension Fund Manager (PFM)?
SBI PFM is a pension fund manager under the National Pension System (NPS) that invests retirement savings in equity, bonds, and government securities to ensure growth and safety.
2. What are the returns for Scheme E - Tier 1 (Equity) as of April 04, 2025?
Returns are -1.47% (1 year), 9.64% (3 years), 23.08% (5 years), and 10.82% (since inception).
3. How does SBI PFM ensure stable growth?
It uses a balanced approach, diversifying investments across equity, debt, and government securities to manage risk and growth.
4. What is the AUM of SBI PFM as of March 31, 2025?
SBI PFM’s Assets Under Management (AUM) reached ₹5.14 lakh crore, reflecting significant growth.
5. What makes SBI PFM a trusted choice?
As a subsidiary of the State Bank of India, it offers reliability, stability, and a strong reputation.
6. What are the returns for Scheme G - Tier 1 (Government Securities)?
Returns are 11.53% (1 year), 8.68% (3 years), 7.59% (5 years), and 9.22% (since inception).
