How NPS Tier-1 Accounts Has Outperformed Corporate Debt Funds?

Over the last three years, HDFC Pension Fund Scheme has been the top performer among National Pension System (NPS) funds in the corporate debt funds category. HDFC Pension Fund Scheme is a pension fund managed by HDFC. Over the last three years, it has delivered an annual return of 10.09 percent, outperformed other high-rated Debt Corporate Bonds. According to NPS trust, other pension fund managers' Schemes C (corporate debt) performed well as well, with high returns up to 10.09 percent over the same period. They outperformed their corporate bond mutual fund peers, which returned 8.68 percent on average.

HDFC Pension Fund Scheme was followed by SBI Pension Funds with a three-year return of 9.92 percent, and LIC Pension Fund, with a return of 9.86 percent, came in second and third, respectively. The least outstanding scheme in this category was Kotak Pension Fund, which has a three-year yield of 8.46 percent. Some pension funds has even outperformed corporate bond mutual funds with an average return of 8.45 percent in the five-year return category. Over a five-year period, HDFC Pension Fund's Scheme C has the highest annual return of 9.60 percent. ICICI Prudential Pension Fund and SBI Pension Fund came in second and third, respectively, with 9.44 percent and 9.44 percent returns. Even the worst-performing fund, Kotak Pension Fund, with an 8.64 percent return is failed to touch the benchmark's performance over the five years which is 9.69%.

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