NPS equity funds of HDFC, ICICI Pru pension top the performance chart

HDFC Pension Fund’s equity scheme delivered the highest returns across three- and five-year periods, beating large-cap equity funds in the process. It posted 11.89 percent and 14.51 percent returns respectively across the two time-horizons, followed by ICICI Prudential Pension Fund with 11.2 percent and 13.32 percent during the same period.

However, both failed to beat Nifty 50 TRI, which recorded 12.91 percent and 14.65 percent returns respectively over three- and five-year periods. LIC Pension Fund brought up the rear with 9.57 percent returns and 12.24 percent returns over three and five years respectively, pulling down the category’s average returns.

The National Pension System (NPS) is set for an overhaul once the Pension Fund Regulatory and Development Authority (PFRDA) amendment bill, introduced in the parliament, is passed. It seeks to separate the NPS Trust from PFRDA, the pension regulator. Also in the pipeline is a minimum guarantee pension product that offers assured returns to NPS subscribers. At present, NPS scheme returns are market-linked.