Best NPS Fund Manager in 2023: NPS Tier-1 Scheme Wise Returns Analysis
There are 7 fund houses that are offering funds under different categories for your NPS account. It is often a difficult task to choose the right fund manager for your NPS account while you open a NPS account.
When selecting the best NPS fund manager for an NPS Tier 1 account, it is important to consider various factors, including the performance of different fund houses across different categories.
Key metrics to assess include the assets under management (AUM) of each fund house, the number of subscribers they have attracted, as well as their returns over different timeframes such as 1 year, 3 years, 5 years, and since their inception.
Evaluating these factors will provide a comprehensive overview of the fund houses and help identify the most suitable NPS fund manager for your Tier 1 account.
Consider reading – What are tier 1 and tier 2 in NPS
Page Contents
Who are the Different Fund Managers in NPS?
As of July 2023, there are 10 different fund managers in NPS and they are:
- Aditya Birla Sun Life Pension Management Ltd.
- Axis Pension Fund Management Limited
- HDFC Pension Management Co. Ltd.
- ICICI Pru. Pension Fund Mgmt Co. Ltd.
- Kotak Mahindra Pension Fund Ltd.
- LIC Pension Fund Ltd.
- Max Life Pension Fund Management Limited
- SBI Pension Funds Pvt. Ltd
- Tata Pension Management Ltd.
- UTI Retirement Solutions Ltd.
Consider reading: How to Open NPS Account Online
What are the different types of schemes in NPS?
There are 4 types of schemes under NPS:
- Asset class E: “High return, High risk” (equity market instruments).
- Asset class G: “Low return, Low risk” fixed income instruments. The best example of this is central government bonds.
- Asset class C: “Medium return for credit risk” bearing fixed income instruments. Examples of these are bonds issued by firms.
- Asset class A: Alternate investments like – Investments in REITs, INVITs, etc. (Currently, Asset class A is not being shown as an option on the NPS website).
Who is the Best NPS Fund Manager for Asset Class E Funds?
When you open a NPS account you have the choice to either go for auto allocation of Asset class or choose between different options.
Mostly, people allocate a higher part of their NPS allocation to Asset class E as equity gives the most returns over the long term. This becomes a primary reason to choose the best Asset class E fund for your NPS account.
As per the data from NPS trust for July 2023; below are the performance details of various NPS schemes under the Asset class E category:
| Pension Fund | Inception Date | AUM (Rs Crs) | Subscribers | NAV | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns 7 Years | Returns 10 Years | Returns Inception |
|---|---|---|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life Pension Management Ltd. | 09-May-17 | 352.88 | 39,485 | 20.9285 | 23.90% | 22.63% | 12.46% | NA | NA | 12.77% |
| Axis Pension Fund Management Limited | 21-Oct-22 | 133.43 | 20,957 | 10.7369 | NA | NA | NA | NA | NA | 7.37% |
| HDFC Pension Management Co. Ltd. | 01-Aug-13 | 23,805.24 | 16,39,756 | 38.87 | 23.73% | 24.26% | 13.46% | 14.10% | NA | 14.67% |
| ICICI Pru. Pension Fund Mgmt Co. Ltd. | 18-May-09 | 7,583.13 | 6,19,146 | 51.7557 | 25.78% | 25.23% | 13.25% | 13.30% | 13.76% | 12.34% |
| Kotak Mahindra Pension Fund Ltd. | 15-May-09 | 1,323.95 | 94,306 | 47.9631 | 25.29% | 24.52% | 13.85% | 13.51% | 13.79% | 11.73% |
| LIC Pension Fund Ltd. | 23-Jul-13 | 3,799.45 | 3,75,195 | 32.9329 | 23.84% | 25.49% | 12.95% | 12.57% | NA | 12.74% |
| Max Life Pension Fund Management Limited | 12-Sep-22 | 88.98 | 4,237 | 10.4746 | NA | NA | NA | NA | NA | 4.75% |
| SBI Pension Funds Pvt. Ltd | 15-May-09 | 12,613.69 | 14,40,898 | 42.8692 | 24.54% | 23.59% | 12.48% | 12.88% | 13.21% | 10.85% |
| Tata Pension Management Ltd. | 19-Aug-22 | 64.59 | 12,885 | 10.9867 | NA | NA | NA | NA | NA | 9.87% |
| UTI Retirement Solutions Ltd. | 21-May-09 | 1,694.90 | 1,16,913 | 50.762 | 24.11% | 24.77% | 12.78% | 13.11% | 14.09% | 12.20% |
The best-performing pension funds for different periods under ‘SCHEME – E Tier-I’ are as follows:
- Best Fund for 1 Year: ICICI Pru. Pension Fund Mgmt Co. Ltd.
- Best Fund for 3 Years: LIC Pension Fund Ltd.
- Best Fund for 5 Years: Kotak Mahindra Pension Fund Ltd.
- Best Fund for 7 Years: HDFC Pension Management Co. Ltd.
- Best Fund for 10 Years: UTI Retirement Solutions Ltd.
- Best Fund Since Inception: HDFC Pension Management Co. Ltd.
Who is the Best NPS Fund Manager for Asset Class C Funds?
Asset class C funds invest in bonds, with the recent problems with debt funds and concern over the safety of debt funds investors are looking for the safety of debt funds over returns.
As per the data from NPS trust for July 2023; below are the performance details of various NPS schemes under the Asset class C category:
| Pension Fund | Inception Date | AUM (Rs Crs) | Subscribers | NAV | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns 7 Years | Returns 10 Years | Returns Inception |
|---|---|---|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life Pension Management Ltd. | 09-May-17 | 154.53 | 39,114 | 16.4325 | 8.45% | 5.94% | 8.76% | NA | NA | 8.42% |
| Axis Pension Fund Management Limited | 21-Oct-22 | 64.4 | 20,724 | 10.533 | NA | NA | NA | NA | NA | 5.33% |
| HDFC Pension Management Co. Ltd. | 01-Aug-13 | 10181.63 | 16,14,696 | 24.3423 | 8.17% | 6.39% | 8.91% | 8.41% | NA | 9.38% |
| ICICI Pru. Pension Fund Mgmt Co. Ltd. | 18-May-09 | 3826.75 | 6,13,511 | 36.8526 | 8.31% | 6.20% | 8.52% | 8.21% | 8.79% | 9.67% |
| Kotak Mahindra Pension Fund Ltd. | 15-May-09 | 582.51 | 92,609 | 35.3491 | 8.14% | 5.63% | 7.72% | 7.63% | 8.25% | 9.34% |
| LIC Pension Fund Ltd. | 23-Jul-13 | 2248.6 | 3,74,075 | 23.8916 | 8.50% | 5.97% | 8.63% | 8.03% | NA | 9.15% |
| Max Life Pension Fund Management Limited | 12-Sep-22 | 60.04 | 4,227 | 10.5677 | NA | NA | NA | NA | NA | 5.68% |
| SBI Pension Funds Pvt. Ltd | 15-May-09 | 6686.98 | 14,30,510 | 36.963 | 8.02% | 5.90% | 8.57% | 8.18% | 8.58% | 9.69% |
| Tata Pension Management Ltd. | 19-Aug-22 | 27.96 | 12,739 | 10.5161 | NA | NA | NA | NA | NA | 5.16% |
| UTI Retirement Solutions Ltd. | 21-May-09 | 792.71 | 1,15,491 | 32.7743 | 8.57% | 5.58% | 8.12% | 7.80% | 8.36% | 8.77% |
Who is the Best NPS Fund Manager for Asset Class G Funds?
Asset class G funds invest in low-risk instruments like government bonds. These funds are like Gilt funds. From the below data from NPS trust, it appears that most of the debt funds have given similar returns.
As per the data from NPS trust for July 2023; below are the performance details of various NPS schemes under the Asset class G category:
| Pension Fund | Inception Date | AUM (Rs Crs) | Subscribers | NAV | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns 7 Years | Returns 10 Years | Returns Inception |
|---|---|---|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life Pension Management Ltd. | 09-May-17 | 251.93 | 38,750 | 15.901 | 10.15% | 5.08% | 9.11% | NA | NA | 7.84% |
| Axis Pension Fund Management Limited | 21-Oct-22 | 128.98 | 20,732 | 10.6046 | NA | NA | NA | NA | NA | 6.05% |
| HDFC Pension Management Co. Ltd. | 01-Aug-13 | 17056.22 | 16,09,076 | 23.6687 | 9.66% | 4.76% | 9.11% | 8.14% | NA | 9.08% |
| ICICI Pru. Pension Fund Mgmt Co. Ltd. | 18-May-09 | 6493.16 | 6,09,677 | 31.6547 | 9.65% | 4.76% | 8.84% | 8.01% | 8.27% | 8.50% |
| Kotak Mahindra Pension Fund Ltd. | 15-May-09 | 985.21 | 92,047 | 31.6244 | 9.78% | 4.92% | 9.06% | 8.10% | 8.24% | 8.49% |
| LIC Pension Fund Ltd. | 23-Jul-13 | 4116.62 | 3,80,826 | 25.5682 | 10.12% | 4.93% | 9.53% | 8.90% | NA | 9.90% |
| Max Life Pension Fund Management Limited | 12-Sep-22 | 143.28 | 7,171 | 10.7629 | NA | NA | NA | NA | NA | 7.63% |
| SBI Pension Funds Pvt. Ltd | 15-May-09 | 13876.68 | 14,40,305 | 34.2283 | 9.97% | 4.74% | 8.92% | 8.10% | 8.21% | 9.10% |
| Tata Pension Management Ltd. | 19-Aug-22 | 48.99 | 12,882 | 10.7287 | NA | NA | NA | NA | NA | 7.29% |
| UTI Retirement Solutions Ltd. | 21-May-09 | 1440.95 | 1,12,784 | 30.5604 | 10.50% | 4.65% | 8.73% | 7.73% | 7.97% | 8.23% |
Who is the Best NPS Fund Manager for Asset Class A Funds?
Asset class A funds invest in alternate investment funds like REITs, INVITs, etc. Currently, this scheme is not shown as one of the investment options and the AUMs shown below are for the subscribers who opted for it when the scheme was available for selection.
As per the data from NPS trust for July 2023; below are the performance details of various NPS schemes under the Asset class A category:
| Pension Fund | Inception Date | AUM (Rs Crs) | Subscribers | NAV | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns 7 Years | Returns 10 Years | Returns Inception |
|---|---|---|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life Pension Management Ltd. | 15-May-17 | 2.93 | 3,639 | 14.2153 | 2.39% | 5.40% | 5.70% | NA | NA | 5.91% |
| Axis Pension Fund Management Limited | 21-Oct-22 | 0.55 | 1,461 | 10.4299 | NA | NA | NA | NA | NA | 4.30% |
| HDFC Pension Management Co. Ltd. | 10-Oct-16 | 167.76 | 1,52,369 | 16.9306 | 5.18% | 8.61% | 8.35% | NA | NA | 8.15% |
| ICICI Pru. Pension Fund Mgmt Co. Ltd. | 21-Nov-16 | 33.79 | 42,258 | 15.1465 | 1.50% | 6.64% | 6.60% | NA | NA | 6.48% |
| Kotak Mahindra Pension Fund Ltd. | 14-Oct-16 | 8.74 | 8,022 | 14.8902 | 0.15% | 4.15% | 5.94% | NA | NA | 6.11% |
| LIC Pension Fund Ltd. | 13-Oct-16 | 13.77 | 21,118 | 16.2462 | 6.88% | 7.97% | 7.86% | NA | NA | 7.49% |
| Max Life Pension Fund Management Limited | 12-Sep-22 | 0.09 | 146 | 9.0456 | NA | NA | NA | NA | NA | -9.54% |
| SBI Pension Funds Pvt. Ltd | 13-Oct-16 | 57.41 | 85,236 | 17.0189 | 0.78% | 6.17% | 8.71% | NA | NA | 8.24% |
| Tata Pension Management Ltd. | 19-Aug-22 | 0.55 | 1,328 | 10.5637 | NA | NA | NA | NA | NA | 5.64% |
| UTI Retirement Solutions Ltd. | 14-Oct-16 | 8.48 | 8,132 | 14.8436 | 4.29% | 5.33% | 5.84% | NA | NA | 6.06% |
Consider reading: What is REIT Investment in India
FAQs on Best NPS Fund Manager
Who is the best fund manager in NPS?
The best fund managers in the National Pension System (NPS) include SBI Pension Funds, LIC Pension Fund, and UTI Retirement Solutions. Other reliable options are HDFC Pension Management, ICICI Prudential Pension Fund Management, Kotak Mahindra Pension Fund, and Aditya Birla Sunlife Pension Management. TAPIUM MANAGEMENT LTD is also a notable pension fund manager. Choose a fund manager based on your investment goals and risk appetite.
How to choose the best NPS fund manager?
The best way to choose an NPS fund manager is to consider their track record in the specific investment category you prefer. If you favor equity investments, select a fund manager who consistently outperforms in equity funds. For higher debt exposure, choose a fund manager with a strong track record in debt funds. Taking these factors into account will help you find the best NPS fund manager for your investment goals.
Which pension fund managers are good for NPS?
Some good pension fund managers for NPS in India include Aditya Birla Sun Life, HDFC, ICICI Prudential, Kotak Mahindra, LIC, SBI, and UTI Retirement Solutions.
Which fund gives the highest return in NPS?
The National Pension Scheme (NPS) offers various funds with different return rates. To identify the fund with the highest return in NPS, it is recommended to review the annual performance data provided by the Pension Fund Regulatory and Development Authority (PFRDA). PFRDA publishes a list of the top-performing NPS funds annually, which can help investors make informed decisions.
