NPS subscribers see 24-28% equity returns, ICICI Prudential leads

NPS returns soar: National Pension System (NPS) subscribers have experienced substantial one-year equity returns ranging from 24 per cent to 28 per cent per annum across various pension fund managers for Tier-I accounts in the past year. Notably, ICICI Prudential Pension provided the highest returns on equity investments. The NPS offers two investment options: auto and active, allowing subscribers to either decide the asset class ratio or have investments allocated based on age and risk appetite.

Front runners in returns

Tier-I accounts:

Amongst pension fund managers, ICICI Prudential Pension took the lead by delivering 27.98 per cent one-year return on equity investments for Tier-I accounts, according to NPS Trust data. Tata Pension closely followed with a return of 27.37 per cent. Conversely, HDFC Pension Management recorded the lowest returns at 24.15 per cent.

Tier-II accounts:

For Tier-II accounts, ICICI Prudential Pension continued its performance, offering the highest one-year returns of 28.41 per cent on equity investments. Tata Pension secured the second position with a return of 27.64 per cent. LIC Pension Fund exhibited the lowest returns at 22.62 per cent.

Notably, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new mechanism, allowing NPS subscribers to deposit contributions through the Unified Payments Interface (UPI) QR code using the D-Remit process. This approach provides subscribers with a convenient and efficient way to transfer their contributions.