LIC, HDFC pension funds deliver best returns in the G-sec category

LIC Pension Fund trumped its National Pension System (NPS) scheme peers to emerge as the numero uno in the government securities (g-sec) fund category. A consistent performer in this category, it yielded the highest returns annually over three and five-year horizons, recording 12.04 percent and 9.89 percent respectively, as per data from Value Research. It was followed by HDFC Pension, with returns of 11.49 percent and 8.93 percent respectively. All pension fund managers beat their mutual fund peers as well as the benchmark over three years, while all but one repeated this performance in the five-year return category too.

Change is in the air

NPS is set for an overhaul in the coming days, with the Pension Fund Regulatory and Development Authority (PFRDA) deciding to permit investments in initial public offerings (IPOs), follow-on public offers (FPOs) and offer-for-sale (OFS). The objective is to broaden the range of investment options available to pension fund managers and offer better returns to subscribers. According to PFRDA chairman Supratim Bandyopadhyay, the regulatory guidelines may specify the minimum IPO size to disallow investments in smaller public offers. Detailed guidelines are expected to be released soon.