Top Performing NPS Schemes 2024

The National Pension Scheme (NPS) is one of India’s most accepted pension-oriented products. The Central Government introduced the programme as part of a social security initiative for all Indian citizens. The NPS scheme allows individuals employed in public and private sectors to invest in low-risk equity funds, security funds, or alternative investments with good returns. 

Investing in NPS will give you an edge over fixed-income schemes and allow you to avail tax benefits up to Rs.1.5 lakh under Section 80C and Section 80CCD of the Income Tax Act, 1961, depending on the type of account, i.e. Tier-I or Tier-II. While the lock-in period on NPS schemes is until retirement, you can choose to withdraw your funds prematurely in specific cases to cater to unforeseen financial requirements.  

The pension programme also benefits you from choosing the allocation of your investments. The scheme gives you the option to select the funds automatically or manually. While the active choice will allow you to determine the plan and percentage of your funds you wish to invest in, the auto choice will allocate your investments based on your age and risk profile.

Pension Fund Managers

At present, there are ten pension fund managers in the country.

• SBI Pension Funds Pvt. Ltd.
• LIC Pension Fund Ltd.
• UTI Retirement Solutions Ltd.
• HDFC Pension Management Co. Ltd.
• ICICI Prudential Pension Fund Management Co. Ltd.
• Kotak Mahindra Pension Fund Ltd.
• Aditya Birla Sunlife Pension Management Ltd.
• Tata Pension Management Ltd.
• Max Life Pension Fund Management Ltd.
• Axis Pension Fund Management Ltd.

SBI Pension Fund, LIC Pension Fund, and UTI Retirement Solutions are the only fund managers who manage pension contributions of government employees under NPS.

Top Performing NPS Fund Managers – Central Government Scheme

As of the 15th December 2023, LIC Pension Fund generated the best returns of 9.09% in the past five years under the NPS Central Government Scheme. The fund mainly invests in the government (GOI) securities and central government loans. The next in line is recorded by the SBI Pension Fund with the returns generated recorded at 9.06% for the same period. UTI Retirement Solutions also recorded the returns at 9.02% in the last five years.

Best Performing NPS Fund Managers 2023 – State Government Schemes

SBI Pension Fund generated the highest returns of 9.03% under the NPS state government scheme in the last five years. The fund’s portfolio is predominantly exposed to the financial sector (banking and state development loans). LIC Pension Fund followed it by generating 9.02% returns over the last five years.

Best Performing NPS Tier-I Returns 2023 – Scheme E (as of 15th Dec 2023)

Note: The returns for Tata Pension Fund, Max Life Pension Fund and Axis Pension Fund are not available since they were launched in August 2022, September 2022 and October 2022, respectively.

Best Performing NPS Tier-I Returns 2023 – Scheme G (as of 15th Dec 2023)

Best Performing NPS Tier-I Returns 2023 – Scheme C (as of 15th Dec 2023)

Best Performing NPS Tier-I Returns 2023 – Scheme A (as of 15th Dec 2023)

Fund Managers Generating the Best NPS Tier-I Equity Funds Returns On Various Terms (as of 15th Dec 2023)

Top Performing NPS Tier-II Returns 2023 – Scheme E

Note: The returns for Tata Pension Fund, Max Life Pension Fund and Axis Pension Fund are not available since they were launched in August 2022, September 2022 and October 2022, respectively.

Fund Managers Generating the Best NPS Tier-II Equity Funds Returns On Different Tenures (as of 31st Jan 2023)

NPS Pension Calculator

Calculate monthly pension & tax benefits through Cleartax NPS Calculator. Utilise the pension calculator to know the lump sum amount and the provisional pension you can expect on maturity or at the time of retirement based on your monthly instalments. All you have to do is key in the basic parameters of your scheme. The automated tool will calculate the tentative pension and the total corpus you can expect at the end of the tenure. 

Most investors choose to invest in the NPS only to save on taxes. However, with the contribution to the NPS having been mandated for state and central government employees, many consumers have opted for the pension programme, unaware of the tax implications and benefit NPS offers. Hence, it is advised to ensure that you understand the rules regarding the withdrawal of funds and mandatory clauses involved in the product before you begin investing. 

Returns under NPS Schemes (Download)

Download NPS scheme performance report as of 15th December 2023.

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