Top 7 NPS Mutual Funds for Your Investment Portfolio

Introduction:
The National Pension System (NPS) stands as a vital avenue for non-government employees to secure their retirement through disciplined investment. Divided into Tier-1 and Tier-2 accounts, NPS offers differing features and benefits, including tax advantages and flexible withdrawal options. In this article, we delve into the performance of the top NPS mutual funds over the past five years, shedding light on their returns and contributions to investors’ financial well-being.

Tier-1 of the National Pension Scheme (NPS) operates a pension plan with a lock-in period of 15 years and offers tax benefits up to Rs 50,000. Conversely, Tier-2 accounts do not have a lock-in period, allowing withdrawals at any time. NPS caters to non-government employees, facilitating monthly investments for pension benefits. Tier-2 accounts, however, do not provide tax advantages.

Here’s a rundown of the returns from the top NPS mutual funds over the past five years:

1. ICICI Prudential Fund Scheme E-Tier-II:

Achieved a return of 16.60%, surpassing the category average of 15.84%. A Rs 1 lakh investment five years ago has grown to Rs 2,14,913.0.

2. Kotak Pension Fund Scheme E-Tier-1:

Delivered returns of 16.40% over five years, exceeding the category average. With an NAV of Rs 58.85, a Rs 1 lakh investment has grown to Rs 2,14,002.60.

3. HDFC Pension Management Company Limited Scheme E-Tier-II:

Recorded returns of 16.20% over the last five years, outperforming the category average. With an NAV of Rs 40.89, a Rs 1 lakh investment has grown to Rs 2,11,399.80.

4. Birla Sunlife Pension Scheme E-Tier-II:

Achieved returns of 16.00% over five years, in line with the category average. With an NAV of Rs 25.50, a Rs 1 lakh investment has grown to Rs 2,09,689.0.

5. UTI Retirement Solutions Pension Fund Scheme E-Tier I:

Yielded returns of 15.70% over five years, slightly below the category average. With an NAV of Rs 62.81, a Rs 1 lakh investment has grown to Rs 20,7374.80.

6. LIC Pension Fund Scheme E-Tier I:

Earned a return of 15.60% over the past five years, slightly below the category average. With an NAV of Rs 40.20, a Rs 1 lakh investment has grown to Rs 2,06,813.70.

7. SBI Pension Fund Scheme E-Tier I:

Delivered returns of 15.00% over five years, slightly below the category average. With an NAV of Rs 51.94, a Rs 1 lakh investment has grown to Rs 20,0957.30.

Conclusion:
In conclusion, the analysis of top NPS mutual funds underscores the importance of informed investment decisions in securing a stable financial future. While each fund exhibits varying returns and performances, their collective contribution highlights the potential for long-term wealth accumulation through the National Pension System. As investors navigate the complexities of retirement planning, the insights gleaned from this examination can serve as a guiding beacon towards maximizing returns and achieving financial security in the twilight years.