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Home >Money >Personal Finance >NPS performance: Debt schemes give double-digit returns, equities remain dull

Debt schemes of National Pension System (NPS) have given wonderful double-digit returns while the returns from the equity scheme Scheme E of NPS remained muted. Scheme G of NPS is topping the charts with an average return of 12% in the last one year. Scheme G of NPS invests in government bonds and related securities. It is a low risk investment option. NPS is a low-cost retirement product offered by the government which qualifies for taxation benefits under Section 80C. It is a market linked product and does not offer any guaranteed returns. Here is a look at how different investments under NPS Tier 1 has performed.

A Tier 1 NPS account is the basic retirement account which is mandatory if you want to avail NPS benefits. While NPS was launched to replace the old pension system in 2004 for government employees only, it was opened up for all citizens of the country in 2009. The low-cost structure and the tax efficiency makes it a great investment for retirement planning.

Tier 1 account of NPS allows four investment options as below:

Asset class E - Equity and related instruments

Asset class C - Corporate debt and related instruments

Asset class G - Government Bonds and related instruments

Asset Class A - Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc.

There are seven fund managers under NPS. You can choose to invest in any one of your choice.

Here's how different schemes under NPS Tier 1, managed by different fund managers have performed:

Asset class E - Equity and related instruments: It manages an AUM of 13,028 crore as on October 16.

Performance of NPS Scheme E - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust
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Performance of NPS Scheme E - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust

Asset class C -This scheme invests in corporate debt and related instruments: It manages assets worth 7,844 crore as on October 16.

Performance of NPS Scheme C - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust
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Performance of NPS Scheme C - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust

Asset class G - Government Bonds and related instruments: It manages an AUM of 13,424 crore as on October 16.

Performance of NPS Scheme G - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust
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Performance of NPS Scheme G - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust

Asset Class A - Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc. is a relatively new investment option allowed under NPS. It manages assets worth 53 crore.


Performance of NPS Scheme A - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust
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Performance of NPS Scheme A - Tier 1 as on October 16; returns over 1 year are annualised; Source: NPS Trust
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