Stock
What is NPS?
Best NPS Fund Managers
NPS Fund Performance: Scheme G
The average NPS fund has delivered an annualized return of 10.2% over the last 8 years when investing in government securities. To put this return in perspective, let us compare it with the NIFTY 10 Year Benchmark G-Sec Index, which is typically used as a benchmark by Gilt mutual funds.
The comparison shows that NPS funds have outperformed the NIFTY 10 Year Benchmark G-Sec Index by a decent margin. While the NPS funds have delivered annualized returns of over 10%, the NIFTY 10 Year Benchmark G-Sec Index has delivered 7.5% annualized returns over the previous 8 years.
NPS Fund Performance: Scheme C
In the last 8 years, the performance of corporate debt funds across different pension fund managers has been remarkably similar to government bonds.
From a benchmarking perspective, the average NPS fund has delivered a little higher returns when compared to the S&P BSE Corporate Bond Index.
NPS Fund Performance: Scheme E
When it comes to equities, all pension fund managers seem to move as a unified group. If you look at the annualized returns of the last 8 years, returns from most funds are around the average of 14.5%, with only HDFC and LIC a bit further off.
From a benchmarking standpoint, since different funds might be following a different index, let’s use the NIFTY 50 TRI and the NIFTY 200 TRI index as our reference points.
