NPS Equity Funds Yield Up to 16% Returns in 3 Years – See Top Performers!

NPS equity funds have delivered up to 16% returns over the past three years, with seven fund managers overseeing investments during this period, according to Value Research. UTI Pension Fund led with 15.80% returns, managing an AUM of ₹3,257 crore, followed by Kotak Pension Fund with 15.58% returns and an AUM of ₹2,621 crore. ICICI Prudential Pension Fund provided 15.41% returns, handling ₹17,872 crore in assets, while HDFC Pension Fund recorded 14.36% returns with the highest AUM of ₹48,622 crore.

ABSL Pension Scheme and LIC Pension Fund delivered 14.29% and 14.19% returns, managing ₹1,278 crore and ₹5,938 crore, respectively. SBI Pension Fund, though yielding the lowest return at 12.45%, managed ₹18,459 crore in assets. A ₹1,000 monthly SIP in top-performing funds grew to over ₹43,000, with SIP returns ranging from 7.99% to 12.87%, highlighting the strong performance of NPS equity funds as an attractive option for long-term retirement planning.

NPS Equity Funds Yield Up to 16% Returns in 3 Years – See Top Performers!

The National Pension System (NPS) equity funds have generated returns of up to 16% over the past three years, with seven fund managers overseeing investments during this period, according to Value Research. Among the top-performing funds, UTI Pension Fund delivered a return of 15.80% with an AUM of ₹3,257 crore as of January 2025, where a ₹1,000 monthly SIP would now be worth ₹43,245, reflecting a SIP return of 12.87%.

Kotak Pension Fund followed closely with a 15.58% return and an AUM of ₹2,621 crore, with a ₹1,000 SIP growing to ₹43,176 and a SIP return of 12.74%. ICICI Prudential Pension Fund achieved a 15.41% return, managing ₹17,872 crore in assets, and a ₹1,000 SIP would now be ₹43,105, yielding a 12.64% SIP return.

HDFC Pension Fund recorded a 14.36% return with the highest AUM of ₹48,622 crore, where a ₹1,000 SIP would now be worth ₹42,336, giving an 11.34% SIP return. The ABSL Pension Scheme posted a 14.29% return, managing ₹1,278 crore, with a ₹1,000 SIP now at ₹42,096, delivering a 10.93% SIP return.

LIC Pension Fund saw a 14.19% return with an AUM of ₹5,938 crore, where a ₹1,000 SIP would have grown to ₹41,892, reflecting a SIP return of 10.58%. SBI Pension Fund, while delivering a relatively lower return of 12.45%, managed ₹18,459 crore in assets, and a ₹1,000 SIP would now be ₹40,390, yielding a SIP return of 7.99%.

These figures underscore the robust performance of NPS equity funds, reinforcing their appeal as a viable option for long-term retirement planning. Over the past three years, NPS equity schemes have consistently delivered competitive returns, making them an attractive investment avenue for individuals looking to build a stable retirement corpus.

The strong performance of these funds can be attributed to the steady growth of the Indian equity markets, effective fund management strategies, and the compounding benefits of systematic investment plans (SIPs).

Among the top performers, UTI Pension Fund, Kotak Pension Fund, and ICICI Prudential Pension Fund have delivered returns exceeding 15%, highlighting their ability to generate substantial wealth over time. A systematic investment of ₹1,000 per month in these funds has grown to over ₹43,000 in three years, demonstrating the power of disciplined investing. Investors seeking high-growth potential may find these funds particularly attractive, given their ability to outpace inflation and provide long-term financial security.

Additionally, HDFC Pension Fund, ABSL Pension Scheme, LIC Pension Fund, and SBI Pension Fund have also performed well, offering returns between 12.45% and 14.36%. While SBI Pension Fund delivered the lowest return among the seven, it still provided steady growth, making it a reliable option for conservative investors. The variation in fund returns indicates that while all NPS equity funds benefit from market growth, fund selection plays a crucial role in optimizing returns.

With AUMs ranging from ₹1,278 crore to ₹48,622 crore, these funds have gained significant investor confidence. Their growth is further supported by India’s expanding pension market and rising awareness about retirement planning. The NPS framework also offers tax benefits under Section 80CCD, adding to its appeal for investors looking to maximize tax savings while building a long-term corpus.

Given the historical performance and tax advantages, NPS equity funds remain a compelling option for individuals aiming for financial independence in retirement. As the Indian economy continues to grow, these funds are well-positioned to provide stable, inflation-beating returns for long-term investors.