Best NPS Fund Manager – NPS is National Pension Scheme. It is one of the best investment schemes for retirement planning. Apart from investment, NPS also act as very good tax saving tool. In this scheme, a subscriber can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
Whenever you open NPS account you need to select the Pension Fund Manager and Investment Option. There are 8 different NPS Fund Managers and three investment options. You may get confused in selecting the NPS Fund Manager. In order to help you, we have compared NPS Fund Manager Performance for different allocations. It will surely help you in selecting BEST NPS FUND MANAGER and Top NPS Funds for Investment.
Types of NPS Funds – NPS Fund Manager & Scheme Preference
On the Registration of NPS account you need to select Scheme Preference Details which includes NPS Fund Manager and investment option. You have various options for making a selection.
Pension Fund Manager (PFM) under NPS –
There are eight different NPS Fund Managers choices offered to the subscriber while opening an account. The name of fund managers are given below.
- Birla Sunlife Pension Management Limited
- HDFC Pension Management Company Limited
- ICICI Prudential Pension Funds Management Company Limited
- Kotak Mahindra Pension Fund Limited
- LIC Pension Fund Limited
- Reliance Capital Pension Fund Limited
- SBI Pension Funds Private Limited
- UTI Retirement Solutions Limited
Investment Options –
NPS Subscriber is also required to select investment options. Two Investment options are offered to the subscriber.
Active – Under Active option, you have rights to decide how to invest his/her money. You need to decide asset class as well as percentage allocation for each schemes. There are four asset classes under single Pension Fund Manager.
- Asset class E – Equity and related instruments
- Asset class C – Corporate debt and related instruments
- Asset class G – Government Bonds and related instruments
- Asset Class A – Alternative Investment Funds (Tire 1)
The total allocation across E, C, G and A asset classes must be equal to 100%. Up to 50 years of age, the maximum permitted Equity Investment is 75% of the total asset allocation.
Auto – Under Auto option, fund allocation takes place automatically. If you do not have the required knowledge to manage NPS funds you can select this option. In this option, the investments will be made in a life-cycle fund. Here, the proportion of funds invested across three asset Page 3 of 5 classes will be determined by a pre-defined portfolio (which would change as per age of Subscriber).
Depending upon the risk appetite of Subscriber, there are three different options available within ‘Auto Choice’ – Aggressive, Moderate and Conservative.
Aggressive – Under Aggressive option, Maximum equity allocation is kept at 75% up to 35 years of age. Equity exposure reduces with growing age.
Moderate – Under Moderate option, Maximum equity allocation is kept at 50% up to 35 years of age.
Conservative – Under Conservative option, Maximum equity allocation is kept at 25% up to 35 years of age.
By now, you must be clear that NPS returns are purely dependent on the selection of NPS Fund Manager and asset allocation type.
Best NPS Fund Manager 2019
Let us analyse the best NPS Funds and their historical performance.
Best NPS Fund Returns 2019 – Central Government Plans
- The NPS Accounts of Central Government is managed by three pension fund managers – SBI, UTI and LIC.
- The Best Fund manager based on consistent return is SBI. SBI Fund has generated highest returns of 9.78% since inception.
- The Assets managed by SBI is highest among all three fund managers. AUM of SBI is 37058 Cr.
Best NPS Fund Returns 2019 – State Government Plans
- The NPS accounts of State Government is also managed by three pension funds – SBI,UTI and LIC.
- The Best Fund Manager based on consistent return under state government plan is SBI. SBI Fund has generated 9.35% return since inception.
- Assets under management by SBI is highest among others. AUM of SBI under this category is 51433 Cr.
Best NPS Fund Returns – Scheme – E – Tire 1
- The NPs accounts of Scheme E – Tire 1 is managed by eight different fund managers. These fund managers invest money in equity and equity related instruments.
- The Best Fund manager based on consistent return in this category is HDFC Pension Management. This fund has generated 14.01% return since inception. The Asset Under Management in this fund is second highest. SBI Pension Funds is managing highest AUM 2159 Cr.
Best NPS Fund Returns – Scheme – C – Tire 1
- Under Scheme C – Tire 1 ICICI Pru. Pension Fund and SBI Pension Fund is highest and consistent return generating funds. ICICI Pru Fund has generated 10.29% return since inception.
- HDFC Pension Management fund is also doing well. HDFC pension fund has given 9.82% return since inception.
Best NPS Fund Returns – Scheme – G – Tire 1
- LIC Pension Fund is one of the best NPS Fund in term of returns. LIC Pension Fund has generated maximum returns of 12.72% in last one year. Since inception also LIC pension fund has generated very good returns.
- SBI Pension fund is second when it comes to returns. AUM maintained under SBI is highest 2664 Cr.
Best NPS Fund Returns – Scheme – E – Tire 2
- HDFC Pension Fund and UTI Retirement Solution are two best fund managers under scheme Tire 2. These two funds has generated very good returns in the past.
- These funds are also doing well in terms of returns, downside risk and consistency.
Best NPS Fund Returns – Scheme – C – Tire 2
- ICICI prudential & SBI Pension funds are best NPS fund under corporate fixed income plan category. ICICI Pru has generated highest returns since inception.
Best NPS Fund Returns – Scheme – G – Tire 2
- LIC pension fund is doing well when it comes to government bond related category. LIC Pension Fund has generated 11.26% returns since inception.
- ICICI Pru is also doing well in terms of returns, downside risk and consistency.
Note – NPS returns detail given above is as on 1st March,2019.
Who is Best NPS Fund Manager 2019?
From above returns details, I have tried to compile consolidated list of Best NPS Fund Manager 2019. The main criteria for shortlisting is consistent performance since last five years.
Hope the information given above is enough for you to judge which NPS is performing better and which fund manager to select while opening NPS account.
In case, you would like to do more analysis and calculate the returns generated for various NPS funds, you can use NPS calculator.
NPS Calculator is available on NPS Trust portal.
- The NPS Calculator contains multiple sections. In the first section you need to select NPS contribution. The options are Government, Private, Corporate, NPS Swalamban and APY.
- On the selection of scheme type you need to select the pension fund.
- Once you select fund type you need to select time period for investment. You can select 1 year, 2 Year, 3 Year, 5 Year or since inception option.
- This calculator also gives you facility to calculate returns for the specific time period.
- You can also select Asset allocation between equity, corporate bonds and government securities for the calculation of returns.
I hope Information given above for the NPS Calculator and Best NPS Fund Manager 2019 will help you while investing in NPS.