NPS Scheme E-Tier 1 Has Given Over 60% Returns In 1 Year, Details Inside

The National Pension System's (NPS) equity funds have generated strong returns over the last 1 year. As of May 31, 2021, five of the seven asset management corporations that handle funds under Scheme-E tier-1 funds have managed to achieve above 60% returns in the previous year. On the other hand, in the previous six months, the National Pension System (NPS) Scheme has delivered 21.78 per cent. These returns have popped up due to the outstanding success of its most well-known schemes, such as the LIC Pension Fund, UTI Retirement Solution Fund, ICICI Pension Fund, Kotak Pension Fund, and HDFC Pension Fund. All these funds have managed to produce over 60% returns in the previous year and over 20% returns in the last six months, according to NPS Trust data accessible at npstrust.org.in. Let's discuss in brief:

HDFC Pension Fund

In the previous six months, HDFC Pension Fund has returned 21.35 per cent in Scheme E Tier-1 and 21.23 per cent in Scheme E Tier-2. In the previous year, HDFC Pension Fund provided a 63.08 per cent return in Scheme E Tier-1 and a 62.85 per cent return in Scheme E Tier-2. This fund's 5-year CAGR in Tier-1 and Tier-2 schemes was 15.36 per cent and 15.41 per cent, respectively, over the last five years.

UTI Retirement Solution Fund

The UTI Retirement Solution Fund has returned 21.97 per cent in Scheme E Tier-1 and 23.07 per cent in Scheme E Tier-2. In Scheme E Tier-1, the UTI Retirement Solution Fund under the NPS Scheme generated 64.28 per cent, whereas under Scheme E Tier-2, the UTI scheme provided 65.90 per cent. This fund's 5-year CAGR in Tier-1 and Tier-2 schemes were 14.04 per cent and 14.35 per cent, respectively, over the last five years.    

LIC Pension Fund

According to the performance chart of individual NPS schemes as of May 31, 2021, the LIC Pension Fund has produced a 23.03 per cent return in Scheme E Tier-1, whereas the NPS scheme has given a solid 22.82 per cent return in Scheme E Tier-2. According to the performance table of individual NPS schemes as of May 31, 2021, LIC Pension Fund has provided a 65.16 per cent return in Scheme E Tier-1, and a solid 65.59 per cent return in Scheme E Tier-2 in the previous year. This fund's 5-year CAGR in Tier-1 and Tier-2 schemes were 12.78 per cent and 12.76 per cent, respectively, over the last five years.     

Kotak Pension Fund

In the previous six months, Kotak Pension Fund has delivered 20.79 per cent in Scheme E Tier-1 and 20.50 per cent in Scheme E Tier-2. In the previous fiscal year, Kotak Pension Fund produced 60.98 per cent in Scheme E Tier-1 and 60.11 per cent in Scheme E Tier-2. The fund has achieved an annualised return of 13.96 per cent in Tier-1 and 13.82 per cent in Tier-2 schemes during the previous five years.

ICICI Pension Fund

The ICICI Pension Fund provided a solid 21.44 per cent in Scheme E Tier-1, whereas the NPS Scheme delivered 21.34 per cent in Scheme E Tier-2 in the last 6 months till May 2021. In the year leading up to May 2021, the ICICI Pension Fund returned 65.08 per cent in Scheme E Tier-1, while the NPS Scheme returned 65.02 per cent in Scheme E Tier-2. The fund has produced an annualised return of 13.90 per cent in Tier-1 and 13.99 per cent in Tier-2 scheme during the previous five years.   

NPS Scheme E Tier-1 Returns

Below are the latest returns of NPS Scheme E Tier-1 as on 18.06.2021:

Pension Fund	1 year returns	3 year returns	5 year returns
Aditya Birla Sun Life Pension Management Ltd.	50.74%	12.72%	NA
HDFC Pension Management Co. Ltd.	56.85%	13.93%	15.40%
ICICI Pru. Pension Fund Mgmt Co. Ltd.	59.18%	13.33%	14.08%
Kotak Mahindra Pension Fund Ltd.	55.35%	13.38%	14.10%
LIC Pension Fund Ltd.	58.72%	12.32%	12.83%
SBI Pension Funds Pvt. Ltd	53.82%	12.25%	13.64%
UTI Retirement Solutions Ltd.	58.43%	12.70%	14.10%
Benchmark Return as on 18/06/2021	58.73%	14.19%	15.25%
Source: NPS Trust

NPS Scheme E Tier-2 Return

Here are the latest returns of NPS Scheme E Tier-11 as on 18.06.2021: 

Pension Fund	1 year returns	3 year returns	5 year returns
Aditya Birla Sun Life Pension Management Ltd.	50.74%	12.65%	NA
HDFC Pension Management Co. Ltd.	56.73%	13.84%	15.43%
ICICI Pru. Pension Fund Mgmt Co. Ltd.	59.19%	13.45%	14.17%
Kotak Mahindra Pension Fund Ltd.	54.64%	13.20%	13.95%
LIC Pension Fund Ltd.	58.78%	12.53%	12.83%
SBI Pension Funds Pvt. Ltd	54.55%	12.36%	13.73%
UTI Retirement Solutions Ltd.	60.05%	13.20%	14.39%
Benchmark Return as on 18/06/2021	58.73%	14.19%	15.25%
Source: NPS Trust