Find your suitable insurance plan
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6 min read
Updated on Mar 14, 2023
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.
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.
| 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 |
8.20 |
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
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
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
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
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
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
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
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
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
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
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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The Top Performing NPS Fund Managers are the ones offered by the government of India. SBI Pension Fund is one such fund.
SBI Pension Fund
LIC Pension Fund
ICICI Prudential Pension fund etc.
Yes, NPS is a good pension scheme for anyone who wants to plan their retirement early on and has a low-risk appetite.
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.%.
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.
‘LIC Jeevan Shanti’ is one of the best retirement plans available with a rate of interest of up to 11.68
PayBima Team
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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