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NPS Returns for Tier I & Tier II Accounts

What Is the Return on NPS?

NPS Return Rates as of January 2021

Here is a table on the NPS Tier-I returns on the corporate, alternate assets, government and equity asset classes, respectively, for 1-year, 5-year and 10-year returns.

1-year

5-year

10-year

12.46%-14.47%

9.27%-10.15%

10.05%-10.64%

3.98%-16.73%

NA

NA

12.95%-14.26%

10.29%-10.88%

9.57%-10.05%

15.33%-18.81%

13.11%-15.72%

10.45%-10.86%

[1]

Additionally, NPS Tier-II return rates on corporate, government, and equity asset classes as of 15th January 2021, for 1, 5 and 10-year are explained in the following table.

1-year

5-year

10-year

12.71%-16.36%

9.55%-10.17%

9.86%-10.60%

12.61%-13.42%

10.40%-12.00%

9.59%-10.07%

15.19%-17.92%

13.05%-15.83%

10.35%-10.58%

[2]

Apart from this, let’s look at some top-performing NPS funds and their respective return rates in 2021.

Central Government Scheme as of May 2021

Pension Fund Managers

3-year

5-year

SBI Pension Fund

11.29%

9.93%

UTI Retirement Solutions

11.29%

10.07%

LIC Pension Fund

11.28%

9.93%

[3]

State Government Schemes as of May 2021

Pension Fund Managers

3-year

5-year

SBI Pension Fund

11.31%

9.92%

LIC Pension Fund

11.17%

9.85%

LIC Pension FundUTI Retirement Solutions

11.25%

9.98%

[4]

Tier-I Equity Funds Return for Scheme E as of September 2021

Pension Fund Manager

Term

Returns

UTI Retirement Solutions

1-year

58.07%

HDFC Pension Fund

3-year

14.26%

UTI Retirement Solutions

5-year

14.03%

[5]

Tier-II Equity Funds Return for Scheme E as of September 2021

Pension Fund Manager

Term

Returns

UTI Retirement Solutions

1-year

59.65%

HDFC Pension Fund

3-year

14.16%

UTI Retirement Solutions

5-year

14.36%

[6]

Other than this, it is crucial to know about the NPS return rates of the past two years to estimate the expected returns.

NPS Tier-I Scheme E returns as of December 2020

Fund

3-year

5-year

HDFC

10.07%

13.56%

LIC

6.99%

10.76%

ICICI

9.07%

12.27%

Kotak

8.11%

12.28%

Reliance

8.82%

8.08%

UTI

8.52%

12.36%

SBI

8.82%

12.26%

[7]

Scheme C NPS Tier-I Returns as of December 2020

Fund

3-year

5-year

LIC

10.10%

9.87%

ICICI

9.93%

9.99%

UTI

9.53%

9.64%

HDFC

10.30%

10.20%

SBI

10.07%

9.97%

Kotak

8.86%

9.32%

[8]

NPS Tier-I Scheme G Returns as of December 2020

Fund

3-year

5-year

HDFC

11.43%

10.79%

LIC

12.24%

11.71%

ICICI

10.96%

10.56%

Kotak

10.97%

10.71%

UTI

10.69%

10.17%

SBI

11.08%

10.71%

[9]

Alternate Assets Returns for NPS Tier-I as of July 2019

Fund

1-year

LIC

10.46%

ICICI

11.59%

UTI

7.56%

Relience

7.60%

HDFC

11.84%

SBI

10.44%

Birla

7.53%

Kotak

12.12%

[10]

Equity Returns for NPS Tier-II as of July 2019

Fund

3-year

5-year

HDFC

11.17%

9.54%

LIC

8.21%

7.18%

Birla

NA

NA

ICICI

9.62%

8.76%

Kotak

9.73%

8.86%

Reliance

8.71%

8.02%

UTI

9.90%

9.57%

SBI

9.82%

8.99%

[11]

NPS Tier-II Corporate Bond Returns as of July 2019

Fund

3-year

5-year

LIC

8.42%

9.54%

ICICI

9.18%

10.61%

UTI

8.68%

9.99%

Reliance

8.35%

9.77%

HDFC

9.12%

9.48%

SBI

8.86%

10.18%

Birla

NA

NA

Kotak

9.04%

10.13%

[12]

Government Bonds Return for NPS Tier-II as of July 2019

Fund

3-year

5-year

HDFC

9.95%

11.25%

LIC

12.39%

12.60%

Birla

NA

NA

ICICI

10.09%

11.47%

Kotak

9.66%

11.20%

Reliance

9.25%

11.02%

UTI

9.67%

11.16%

SBI

9.91%

11.41%

[13]

Furthermore, the Scheme E NPS Tier-I account has given an average 1-year return rate of 13.20% in 2020. The fund manager HDFC Pension Management has been the top performer with 14.87% returns in Scheme E. Also, Scheme G generated 14.72% returns for an average 1-year term.

In addition to this, Government bonds or securities performed well with double-digit returns over the year.

Are NPS Returns Fixed?

Checking NPS Fund Performance

Can NPS be Negative?

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