The National Pension System (NPS) is one of the most reliable retirement savings options in India, offering individuals an opportunity to secure their financial future. Introduced by the government, the NPS is a long-term investment plan designed to build a retirement corpus with a mix of equity, corporate bonds, and government securities. In this article, we explore the specifics of HDFC PFM, including its pension payout returns, performance, features, charges, benefits, etc.
What is a Pension Fund Manager (PFM)?
HDFC Pension Fund is a licensed PFM regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It manages investments across asset classes like Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investments (A).
The fund manager aims to optimise returns while maintaining a balanced risk profile for long-term growth.
| Also Read: NPS Fund Performance |
NPS Returns of HDFC PFM: Scheme-Wise Performance
Here’s a detailed comparison of returns across different schemes managed by HDFC NPS:
Table 1: Scheme E - Tier 1 (Equity)
| Year | Returns 1 Year | Returns 3 Years | Returns 5 Years | Since Inception |
| Returns | 8.11% | 13.95% | 23.56% | 14.79% |
Disclaimer: The data reflects the performance of schemes managed by HDFC Pension Fund (PFM) as of March 31, 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 | 8.11% | 14.04% | 23.57% | 13.37% |
Disclaimer: The data reflects the performance of schemes managed by HDFC Pension Fund (PFM) as of March 31, 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 | 9.67% | 8.07% | 7.32% | 9.13% |
Disclaimer: The data reflects the performance of schemes managed by HDFC Pension Fund (PFM) as of March 31, 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 | 9.69% | 8.06% | 7.20% | 9.25% |
Disclaimer: The data reflects the performance of schemes managed by HDFC Pension Fund (PFM) as of March 31, 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 | 9.04% | 7.09% | 8.48% | 9.26% |
Disclaimer: The data reflects the performance of schemes managed by HDFC Pension Fund (PFM) as of March 31, 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 | 8.80% | 6.98% | 8.20% | 8.61% |
Disclaimer: The data reflects the performance of schemes managed by HDFC Pension Fund (PFM) as of March 31, 2025. Returns are subject to market fluctuations. Past performance does not guarantee future results.
| Also Read: NPS Tier 1 vs Tier 2 |
Key Features of HDFC PFM
Here are the key features of HDFC PFM:
1. Fund Management Approach:
HDFC follows an investment approach that includes allocations across various asset classes. The distribution of funds is determined based on market trends and investment objectives while maintaining diversification within the portfolio.
2. AUM Growth Over Time:
HDFC Pension Fund has demonstrated significant growth in Assets Under Management (AUM), increasing from ₹10,500 crore in FY2014-15 to ₹38,274 crore in FY2024-25—a threefold increase over a decade.
Benefits of Choosing HDFC PFM
Some of the advantages of selecting HDFC PFM over others are as follows:
1. Higher returns
HDFC PFM's equity-focused strategy has resulted in higher returns, making it suitable for investors who want growth and can tolerate more market fluctuations.
2. Aggressive Growth Strategy
With a focus on equity and corporate debt, HDFC PFM is ideal for investors looking for higher returns through more dynamic investments.
| Also Read: Invest in NPS |
Why Choose HDFC PFM?
Here are some of the compelling reasons to choose HDFC PFM:
- If you have a higher risk tolerance and are aiming for higher returns through greater equity exposure, choosing HDFC PFM via NPS could be a more suitable choice. HDFC’s aggressive approach to fund management, with a significant portion of investments allocated to equity markets, offers the potential for higher growth over the long term.
- If your primary goal is to achieve higher returns and you are open to the increased volatility of equity markets, HDFC PFM is a great choice. HDFC’s approach involves allocating a larger portion of your funds to equity investments, which come with higher risk but also offer greater growth potential over the long term.
The Bottom Line
HDFC NPS combines strong performance with efficient services, making it a reliable choice for retirement planning under the National Pension System framework. With competitive returns across equity, corporate bonds, government securities, and alternative investments, it caters to diverse investor needs while adhering to regulatory standards.
| Also Read: NPS Pension Benefits |
FAQs
1. What asset classes does HDFC Pension Fund manage under NPS?
HDFC Pension Fund is a licensed pension fund manager (PFM) that manages investments in Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investments (A).
2. What are the 5-year returns for Scheme E - Tier 1 (Equity) in HDFC NPS?
The 5-year returns for Scheme E - Tier 1 (Equity) are recorded at 23.56% as of March 31, 2025. These returns are subject to change based on market fluctuations and do not guarantee future performance.
3. What is the since-inception return for Scheme G - Tier 2 (Government Securities)?
The since-inception return for Scheme G—Tier 2 (Government Securities) is 9.25% as of March 31, 2025. This figure is subject to change due to market fluctuations and does not assure future results.
