NPS Equity: The National Pension System (NPS) is regarded as one of the top investment choices for retirement. Equity, also known as Scheme E, is a significant option. Your investment funds are mainly allocated to stocks and equity-related instruments.

As a result, it has the potential to yield higher returns compared to debt or government securities. However, there is a risk of loss if the market takes a downturn. This option is particularly favored for long-term retirement investing.

Who has provided the highest returns in NPS Scheme E?

HDFC Pension tops the 10-year NPS Scheme E statistics. Among public sector options, it achieved an annualized return of 13.01% over a decade, with the benchmark return being 13.12%. ICICI Prudential follows closely with a return of 12.90%, while Kotak delivered a 12.75% return.

In terms of 10-year returns, HDFC Pension leads with 13.01%, followed by ICICI Prudential at 12.90%, Box at 12.75%, UTI at 12.54%, LIC at 11.69%, and SBI at 11.64%. From inception, HDFC Pension again tops the list with 13.93%, followed by ICICI Prudential at 12.44%, LIC at 12.24%, UTI at 12.19%, Box at 11.82%, and SBI at 10.66%.

HDFC also leads in the private sector

In the non-government sector, HDFC Pension excelled, offering a 10-year annualized return of 12.99%. ICICI Prudential provided a return of 12.88%, and Kotak returned 12.74%.

100% equity option in NPS

NPS provides the opportunity to invest more heavily in equities. With Active Choice, investors can set their own asset allocation. In Auto Choice, the equity portion adjusts according to age. Under the Multiple Scheme Framework, non-government subscribers can also opt to invest up to 100% in equities.

Don’t judge solely by returns

When selecting an NPS fund, focusing only on returns is not advisable. Long-term performance is essential. It’s important to evaluate how the fund has fared during market declines.

Additionally, compare it against a benchmark. Consider your overall portfolio and risk profile as well. Since investing is for retirement, it’s unwise to merely pursue last year’s strong returns.