10 Best National Pension Schemes (NPS) in India 2023


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NPS or National Pension Scheme has been gaining huge popularity as one of the best pension schemes in India. Let us consider the 10 best NPS plans in India, in this post.

NPS being a reliable plan with good returns has seen a lot of momentum going on around the policy. Let us take a look at the NPS and the top 10 NPS plans in India to understand which pension scheme is best.

What is NPS or National Pension Scheme?

It is a pension plan offering retirement benefits, which was launched initially for the government employees by the Indian Government. Under the NPS scheme, the investment is done on various security funds and equity funds of low-risk etc., that allows high returns. The account holder also gets tax exemptions under various sections of Income Tax Act of India. Hence, with so many benefits, NPS is regarded as the best pension scheme for senior citizens to create a retirement corpus.

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Below is a list of 10 best pension policy by NPS fund plans in India to invest in 2023:

NPS scheme  Annual Returns in Percentage (5-year)
ICICI Prudential Pension Fund Scheme E- Tier II 11.20
UTI Retirement Solutions Scheme E- Tier II 10.90
HDFC Pension Management Company Limited Scheme E- Tier II 11.70
SBI Pension Fund Scheme E- Tier II 10.70
Kotak Pension Fund Scheme E- Tier I 10.60
SBI Pension Fund Scheme A- Tier I 8.70
LIC Pension Fund Scheme E- Tier I 10.60
LIC Pension Fund Scheme G- Tier II 9.70
HDFC Pension Fund Scheme C- Tier II

HDFC Pension Management Company Limited Scheme A- Tier I


1. HDFC Pension Management Company Limited Scheme E- Tier II

This NPS policy is managed by HDFC Management Company. The plan allows tax benefits over the set limits under the different income tax sections. Here, the account holder must make INR 2000 as minimum contribution per year. This NPS plan suits subscribers in tier II scheme with 2 accounts – tier 1 and tier 2, where the primary account is Tier I and tier II as the optional account.

Net Asset Value – INR 30.95

Asset Under Management – INR 746.42 crore

Returns: 3.20% for 1-year, 16.10% for 3-years and 11.70% for 5-years

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2. ICICI Prudential Pension Fund Scheme E- Tier II 

The fund under this scheme is managed by ICICI Prudential Pension Management Company Limited. The scheme comes under the asset class E and invests in various stocks of more than 68 companies. Here again the account holder must pay INR 2,000 per year minimum to keep it active.

Net Asset Value – INR 37.31

Asset Under Management – INR 259.90 crore

Returns: 2.80% for 1-year, 16.30% for 3-years and 11.20% for 5-years

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3. UTI Retirement Solutions Scheme E- Tier II 

Under this NPS scheme, the investor can invest mainly in instruments that are related to equity or can invest in equities itself. The scheme has 63 companies under its portfolio. Similar to the above schemes, the investor has to pay INR 2000 as minimum amount under this plan as well.

Net Asset Value – INR 38.16

Asset Under Management – INR 71.23 crore

Returns: 3.20% for 1-year, 16.20% for 3-years and 10.90% for 5-years

4. Kotak Pension Fund Scheme E- Tier I 

The Kotak pension scheme was primarily announced for investors in tier I category in the year 2009.  Under this plan, 95% of the capital is invested in equities whereas 3.54 % of the fund is debt securities. A meagre 0.54 % of the amount is invested in other tools of investments. This fund offers over 45 companies under its portfolio and it requires the investor to invest at least INR 6000 annually under the scheme.

Net Asset Value – INR 44.25

Asset Under Management – INR 1,069.57 crore

Returns: 3.30% for 1-year, 16.50% for 3-years and 10.60% for 5-years

5. SBI Pension Fund Scheme E- Tier II 

The SBI pension fund plan suits perfectly for investors in tier I category and it invests in equities most. The scheme was introduced in the year 2009 and the plan comes under asset class scheme E. Like other NPS plans, this scheme allows tax benefits to investors to a certain limit and the minimum contribution it requires is INR 6,000 annually.

Net Asset Value – INR 36.46

Asset Under Management – INR 10,329.34 crore

Returns: 2.90% for 1-year, 15.50% for 3-years and 10.70% for 5-years

6. LIC Pension Fund Scheme E- Tier I

Coming under the E asset class, this NPS scheme is most suitable for subscribers in tier 1 category. The plan offers 83 companies within its portfolio. The scheme requires the account holder to contribute INR 6,000 minimum as annual pay.

Net Asset Value – INR 30.50

Asset Under Management – INR 31,374.94 crore

Returns: 4.10% for 1-year, 16.80% for 3-years and 10.60% for 5-years

7. SBI Pension Fund Scheme A- Tier I

This SBI pension plan belongs to asset class scheme A and is perfect for investors in Tier-I. It invests mostly in debt security funds of over 12 companies and it requires a minimum annual contribution of INR 1,000 from the subscribers.

Net Asset Value – INR 16.61

Asset Under Management – INR 47.79 crore

Returns: 1.40% for 1-year, 8.70% for 3-years and 8.70% for 5-years

8. LIC Pension Fund Scheme G- Tier II 

Launched in 2013, this NPS scheme belongs to asset class G and suits best for tier II subscribers. The account holder is required to contribute INR 2000 minimum under this plan annually. The scheme allows the investors to invest his/her capital in 19 entities under its portfolio.

Net Asset Value – INR 25.01

Asset Under Management – INR 146.28 crore

Returns: 6.40% for 1-year, 16.10% for 3-years and 9.70% for 5-years

9. HDFC Pension Management Company Limited Scheme A- Tier I

The subscriber under this fund invests mainly in alternative bonds. This scheme is perfect for subscribers in tier 1 category and was introduced in the year 2016. The fund comes under Asset Class A and invests primarily in debt securities.

Net Asset Value – INR 16.53

Asset Under Management – INR 132.51 crore

Returns: 5.30% for 1-year, 7.70% for 3-years and 8.20% for 5-years

10. HDFC Pension Fund Scheme C- Tier II 

This Scheme comes under asset class C and suits tier II investors. Rated as AAA by CRISIL, this is an investment scheme that is low in risk and has 41 debt security companies under its portfolio where the subscriber could invest 93.21% of its capital. Here, the account holder needs to pay INR 2,000 minimum annually to keep this account active.

Net Asset Value – INR 22.01

Asset Under Management – INR 343.67 crore

Returns: 4.60% for 1-year, 7.20% for 3-years and 8.10% for 5-years

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To Sum Up

NPS is a low-cost and best pension policy in India which allows stable income along with tax benefits after the investor retires. In addition, the fund allows great flexibility in terms of changes done in allocation of assets and fund manager as per financial goals of the subscriber. To choose the best NPS scheme 2023, check the performance of various plans in the past and compare it with your risk appetite and investment goals.

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FAQs on National Pension Schemes

Which is the best pension policy available in India?

The Top Performing NPS Fund Managers are the ones offered by the government of India. SBI Pension Fund is one such fund.

Which NPS is best in India?

SBI Pension Fund

LIC Pension Fund

ICICI Prudential Pension fund etc. 

Is NPS a good pension scheme?

Yes, NPS is a good pension scheme for anyone who wants to plan their retirement early on and has a low-risk appetite.

Is NPS better than PPF?

The returns generated by PPF are fixed and come under the fixed income category. On the other hand, equity pension funds under NPS allow greater returns in the long term. However, when it comes to risks PPF investments are considered low risk plans as compared to NPS investments which depend on market volatility.%.

Can NPS give negative returns?

Yes, depending on the market risks, NPS investments can show negative returns. Over the past few years, equity funds such as mutual fund investments are also experiencing negative returns.

Which LIC policy is best for pension?

‘LIC Jeevan Shanti’ is one of the best retirement plans available with a rate of interest of up to 11.68

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Mar 13, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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