Choosing Fund Manager under NPS
Author: Siddhi Aggarwal Posted on 27 Jun 2019 14:44:56Pension 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%
|
- Under scheme E, SBI Pension funds possess the highest assets under management (AUM) of Rs.2558.48 Crs.
- The one year returns are lowest for Birla Sun life with 5.43% due to its recent inception.
- 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%
|
- Under scheme C, reliance capital posses the lowest AUM of Rs.66.57 Crs.
- 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%
|
- Birla Sun life and SBI pension funds possess lowest and highest AUM respectively.
- As evident, the government class securities posses higher one year returns of 16-17% than other asset classes.
- 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%
|
- Alternative investment asset class has a cap of 5%, thus, AUM under this scheme is very low as compared to other schemes.
- Inception returns were lowest for Reliance Capital pension fund with 6.86%.
- 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
Disclaimer