Best NPS fund manager in last 10 years

The National Pension System (NPS) is structured for long-term wealth creation, especially for retirement. Under the Tier I account — the default retirement account — subscribers can allocate their investments across three asset classes:

• Scheme E (Equity)
• Scheme C (Corporate Debt)
• Scheme G (Government Bonds)

Let’s take a look at the best-performing fund managers across each of these asset classes over the last 10 years.

Best equity fund manager (10-year return)

The winner is HDFC Pension Fund — 13.55 per cent annualised returns.

Among equity plans, it has delivered the highest 10-year return, marginally ahead of Kotak and UTI.

Close contenders:

• Kotak Pension Fund: 13.45 per cent
• UTI Pension Fund: 13.53 per cent
• ICICI Prudential Pension Fund: 13.28 per cent

Best government bond fund manager (10-year return)

LIC Pension Fund (9.12 per cent CAGR) is topper in this space.

With low credit risk and stable returns, LIC’s government bond plan edges out SBI and HDFC by maintaining a steady hand through rate cycles.

Close contenders:

• SBI Pension Fund: 8.62 per cent
• HDFC Pension Fund: 8.54 per cent

Best corporate debt fund manager (10-year return)

HDFC Pension Fund, at 8.77 per cent annualised returns, again takes the lead.

Close contenders:

• ICICI Prudential Pension Fund: 8.55 per cent
• SBI Pension Fund: 8.51 per cent

So, who’s the overall winner?

If you're looking for a single fund manager with consistent outperformance across asset classes, HDFC Pension Fund stands out.

• Top-ranked in Equity (13.55 per cent)
• Top-ranked in Corporate Debt (8.77 per cent)
• Among top 3 in Government Bonds (8.54 per cent)

That said, one of the big advantages of NPS is flexibility; you can choose a different pension fund manager for each asset class: equity, corporate debt and government bonds. This lets you fine-tune your portfolio for better performance.

For example, if you go purely by 10-year returns, HDFC Pension Fund stands out in both equity and corporate bond categories, while LIC Pension Fund leads the pack in government bonds. So, selecting HDFC for equity and corporate debt, and LIC for government bonds, could help you maximise long-term gains.

Final thoughts

NPS is not just about tax savings. It’s about building a solid retirement corpus. Picking the right fund manager in each field can have a meaningful impact on long-term outcomes.

But remember: Past performance is not a guarantee of future returns. Always align your asset allocation and risk tolerance before making changes to your NPS portfolio.

Incidentally, if you want to check the 1, 3, 5, 7-year performance of each of the pension fund managers, head over to Value Research’s NPS Performance tool. This will help you make an informed choice. 

Also read: NPS investor? Don’t make this mistake

This article was originally published on June 23, 2025.