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Choosing Fund Manager under NPS
Author: Siddhi Aggarwal       Posted on 27 Jun 2019 14:44:56Comments0

Pension fund managers under National Pension Scheme are responsible for managing the retirement savings of the investors under four asset classes – E, G, C and A.

The pension fund managers are registered and regulated under Pension Fund Regulatory and Development Authority (PFRDA). An investor has to make a calculated and appropriate choice from the available fund manager keeping in mind the asset class in which he/she is interested to invest in and the risk taking capacity of an individual.

Risk Scale of different asset classes

High Risk

Moderate Risk

Less risk

Very high risk

Equity class(E)

Corporate debt class(C)

Government bond class(G)

Alternative investment fund class(A)

 

Returns of different pension funds under four asset classes

Scheme E – Tier I

Pension Fund

Inception
Date

AUM
(Rs Crs)

Returns
 1 Year

Returns
3 Years

Returns
5 Years

Returns
Inception

Birla Sun Life Pension Management Ltd.

9-May-17

49.48

5.43%

NA

NA

9.79%

HDFC Pension Management Co. Ltd.

1-Aug-13

2,335.56

7.69%

13.68%

10.65%

14.69%

ICICI Pru. Pension Fund Mgmt Co. Ltd.

18-May-09

1,439.98

7.42%

12.03%

9.80%

11.51%

Kotak Mahindra Pension Fund Ltd.

21-May-09

290.30

7.49%

12.09%

9.91%

10.58%

LIC Pension Fund Ltd.

23-Jul-13

587.41

7.08%

10.83%

9.04%

11.86%

Reliance Capital Pension Fund Ltd.

21-May-09

102.75

7.46%

11.09%

9.07%

10.49%

SBI Pension Funds Pvt. Ltd

15-May-09

2,558.48

7.44%

12.33%

10.02%

9.81%

UTI Retirement Solutions Ltd.

15-May-09

395.30

6.31%

12.31%

10.49%

11.41%







 

 

 

 

 

  1. Under scheme E, SBI Pension funds possess the highest assets under management (AUM) of Rs.2558.48 Crs.
  2. The one year returns are lowest for Birla Sun life with 5.43% due to its recent inception.
  3. From inception till now HDFC Pension fund is performing the best under the Equity asset class.


Scheme C – Tier I

Pension Fund

Inception Date

AUM
(Rs Crs)

Returns
 1 Year

Returns
3 Years

Returns
5 Years

Returns
Inception

Birla Sun Life Pension Management Ltd.

9-May-17

24.58

12.64%

NA

NA

9.67%

HDFC Pension Management Co. Ltd.

1-Aug-13

1339.29

12.40%

9.07%

9.99%

10.36%

ICICI Pru. Pension Fund Mgmt Co. Ltd.

18-May-09

883.28

12.52%

9.32%

10.30%

10.57%

Kotak Mahindra Pension Fund Ltd.

21-May-09

184.22

11.56%

8.96%

9.91%

10.41%

LIC Pension Fund Ltd.

23-Jul-13

378.97

12.33%

8.65%

9.77%

10.20%

Reliance Capital Pension Fund Ltd.

21-May-09

66.57

11.37%

8.86%

9.76%

9.31%

SBI Pension Funds Pvt. Ltd

15-May-09

1671.07

12.18%

9.02%

9.85%

10.53%

UTI Retirement Solutions Ltd.

15-May-09

232.14

11.54%

8.66%

9.61%

9.39%
 
  1. Under scheme C, reliance capital posses the lowest AUM of Rs.66.57 Crs.
  2. One year returns are highest for Birla Sun Life (12.64%) while 5 year returns are highest for ICICI (10.30%)

Scheme G – Tier I

Pension Fund

Inception Date

AUM
(Rs Crs)

Returns
 1 Year

Returns
3 Years

Returns
5 Years

Returns
Inception

Birla Sun Life Pension Management Ltd.

9-May-17

31.27

16.93%

NA

NA

9.35%

HDFC Pension Management Co. Ltd.

1-Aug-13

1995.32

17.05%

10.02%

10.80%

10.50%

ICICI Pru. Pension Fund Mgmt Co. Ltd.

18-May-09

1194.19

16.84%

10.11%

10.92%

9.21%

Kotak Mahindra Pension Fund Ltd.

21-May-09

262.43

17.38%

10.15%

10.91%

9.13%

LIC Pension Fund Ltd.

23-Jul-13

640.60

19.59%

11.93%

11.87%

11.94%

Reliance Capital Pension Fund Ltd.

21-May-09

112.28

16.48%

10.00%

10.89%

8.85%

SBI Pension Funds Pvt. Ltd

15-May-09

3179.72

16.74%

10.13%

11.03%

9.99%

UTI Retirement Solutions Ltd.

15-May-09

363.32

15.99%

9.33%

10.39%

8.81%

 

  1. Birla Sun life and SBI pension funds possess lowest and highest AUM respectively.
  2. As evident,   the government class securities posses higher one year returns of 16-17% than other asset classes.
  3. UTI Retirement Solutions Ltd. has been the worst performer in government class securities since inception.

 

Scheme A -   Tier I

Pension Fund

Inception
Date

AUM
(Rs Crs)

Returns
 1 Year

Returns
3 Years

Returns
5 Years

Returns
Inception

Birla Sun Life Pension Management Ltd.

15-May-17

0.65

7.59%

NA

NA

7.19%

HDFC Pension Management Co. Ltd.

10-Oct-16

9.46

10.63%

NA

NA

8.49%

ICICI Pru. Pension Fund Mgmt Co. Ltd.

21-Nov-16

3.60

10.23%

NA

NA

7.71%

Kotak Mahindra Pension Fund Ltd.

14-Oct-16

1.18

8.95%

NA

NA

7.28%

LIC Pension Fund Ltd.

13-Oct-16

1.20

10.20%

NA

NA

7.83%

Reliance Capital Pension Fund Ltd.

2-Nov-16

0.23

7.61%

NA

NA

6.86%

SBI Pension Funds Pvt. Ltd

13-Oct-16

5.06

9.73%

NA

NA

7.98%

UTI Retirement Solutions Ltd.

14-Oct-16

1.31

7.61%

NA

NA

7.06%
 
  1. Alternative investment asset class has a cap of 5%, thus, AUM under this scheme is very low as compared to other schemes.
  2. Inception returns were lowest for Reliance Capital pension fund with 6.86%.
  3. Scheme A is the new addition to the asset class since 2016.


Source: http://www.npstrust.org.in                                                                                 

Data as on 21st June 2019 


Other blogs in the series:

National Pension System (NPS) - An Introduction Click here

Types of NPS accounts & investment choices Click here


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