In India, the National Pension System (NPS) is one of the most widely used pension-related goods. The programme was launched by the national government as part of a social security plan for all Indian people. Individuals in the public and private sectors can invest in low-risk equities funds, security funds, or alternative investments with high returns under the NPS system. Investing in NPS would provide you an advantage over fixed-income schemes by allowing you to claim tax advantages of up to Rs2 lakh under Section 80C and Section 80CCD of the Income Tax Act, 1961, depending on the account type, i.e. Tier-I or Tier-II. While NPS plans have a lock-in period that lasts until retirement, you can opt to withdraw assets early in certain circumstances to meet unexpected financial needs.

The National Pension System (NPS) is a deferred compensation pension plan. There are two types of NPS systems. Tier 1 and Tier 2 are the two levels of difficulty. Tier 1 has a lengthier lock-in time (15 years for even partial withdrawals) since it is meant to provide income after retirement. Tier 2 investments, on the other hand, are more akin to a savings account from which you may take funds whenever you choose. Tax deductions are not available for Tier 2 investments, but Tier 1 investments provide further deductions of $50,000 per year.

You can also choose how your investments are allocated through the pension scheme. You can choose whether the funds are selected automatically or manually in the plan. While the active option allows you to choose the plan and proportion of your money to invest in, the auto option will distribute your assets based on your risk profile and risk assessment. The majority of investors invest in the NPS just to avoid paying taxes. However, because state and federal government employees are required to contribute to the NPS, many customers have chosen the pension plan, while being uninformed of the tax consequences and benefits it provides. As a result, before you start investing, make sure you understand the regulations for withdrawing funds as well as any required provisions in the product. You can refer here to know more about NPS.


Calculator for Net Promoter Score Use the pension calculator to figure out how much of a lump payment and how much of a provisional pension you may anticipate depending on your monthly instalments at maturity or when you retire. All you have to do is provide the scheme’s fundamental parameters. The automatic programme will compute your projected pension and total corpus at the conclusion of your term.


There are 8 pension fund managers in India at present. The only fund manager who manage government employees’ pension contributions under NPS are SBI Pension Fund, LIC Pension Fund, and UTI Retirement Solutions.

  1. UTI Retirement Solutions Limited.
  2. Reliance Pension Fund
  3. Kotak Mahindra Pension Fund Limited
  4. Aditya Birla Sun Life Pension Management Limited
  5. ICICI Prudential Pension Funds Management Company Limited
  6. SBI Pension Funds Private Limited
  7. HDFC Pension Management Company Limited
  8. LIC Pension Fund

Top performing NPS fund managers- Central Government Scheme

  1. UTI Retirement Solutions
  2. LIC Pension Fund
  3. SBI Pension Fund

Best performing NPS fund managers – State Government Scheme

  1. UTI Retirement Solutions
  2. SBI Pension Fund
  3. LIC Pension Fund

Under the NPS federal government system, UTI Retirement Solutions has achieved the greatest returns of 10.20 percent in the previous five years as of May 31, 2021. The fund primarily invests in the banking and finance industry, as well as the government and financial organisations. The next in line is the SBI Pension Fund, which achieved gains of 19.93 percent during the same time span. In the previous five years, the LIC Pension Fund has returned 9.93 percent.

Best performing NPS tier-1 returns – Scheme E (5-year)

HDFC Pension Fund                    15.36%

UTI Retirement Solutions            14.04%

SBI Pension Fund                        13.54%

ICICI Pension Fund                     13.90%

Kotak Mahindra Pension Fund   13.96%

LIC Pension Fund                        13.90%

Fund Managers generating the best NPS Tier-II Equity Funds returns on different tenures

UTI Retirement Solutions – Scheme E – TIER II                        59.65% (1 year)

HDFC Pension Fund – Scheme E – TIER II                                14.16% (3 year)

UTI Retirement Solutions – Scheme E – TIER II                        14.36% (5year)

Returns of NPS Tier 1 (Equity) as of July 19, 2019 (5 Years)

HDFC PF                  9.48%

KOTAK PF                8.84%

ICICI PF                    8.72%

LIC PF                       7.79%

RELIANCE PF           8.08%

UTI PF                        9.30%

SBI PF                        8.97%

Returns of NPS Tier 1 (Corporate Bonds) as of July19, 2019 (5 Years)

HDFC PF                 10.43%

KOTAK PF               10.34%

ICICI PF                   10.80%

LIC PF                      10.23%

RELIANCE PF          10.23%

UTI PF                       10.05%

SBI PF                       10.30%


Returns of NPS Tier 1 (Government Bonds) as of July 19, 2019 (5 Years)

HDFC PF                 11.40%

KOTAK PF                11.48%

ICICI PF                    11.53%

LIC PF                       10.23%

RELIANCE PF          12.54%

UTI PF                       10.94%

SBI PF                       11.59%

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