NPS equity investment delivers average return of 16.94% in last one year. Details here

Equity investment in National Pension System (NPS) has delivered a return of 16.94 percent in the past one year, the latest PFRDA (Pension Fund Regulatory and Development Authority) data has revealed.

The average annual returns given across pension fund managers, as on December 8, is more than double the 7 percent return of corporate bonds, 7.10 percent in government securities and nearly 8.2 percent in central and state government schemes, the data has revealed.

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Returns given by investment in equity (Tier 2) across pension fund managers

The benchmark return is 16.39 percent, while the returns given by pension fund managers range between 15 percent and 16 percent.

As the picture above shows, Birla Pension Fund gave 15.29 percent return in the past one year, and ICICI Pension Fund gave 16.47 percent return.

The maximum returns given by different PFM across time durations are as follows:

Year                            Highest return (%)  Pension Fund Managers (PFMs)
1 year                                                19.14 ICICI Pension Fund
3 years                                    19.14 ICICI Pension Fund
5 years                                               16.47 ICICI Pension Fund
7 years                                            15.42 HDFC Pension Fund

(Return as on Dec 8, 2023)

As one can see in the table above, highest return given in the past one year and three years was 19.14 percent by ICICI PF. In the past five years, the highest return of 16.47 percent was delivered by ICICI Pension Fund and in the past seven years, the highest return of 15.42 percent was given by HDFC Pension Fund.

Corporate debt

The returns given by investment in corporate debt were in the range of 6-8 percent based on the pension fund manager you choose. The highest return was 7.21 percent whereas the lowest was 5.72 percent, shows the NPS data.

Government securities

The past one-year returns given by investment in the government securities hovered in the range of 6-7 percent. The highest return was 7.24 percent while the lowest was 6.32 percent.

It is vital to note that the PFRDA recently issued a circular where it expanded options for NPS subscribers in the ‘All Citizen Model’ and ‘Corporate Model’ categories, enabling them to opt for preferred fund managers for equity, corporate debt, and gilts.

NPS consists of an open architecture that provides flexibility to subscribers to choose across asset classes, Pension Fund Managers (PFMs), and Central Recordkeeping Agencies (CRAs).

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Published: 18 Dec 2023, 06:54 PM IST

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