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    How different types of NPS funds have performed

    Synopsis

    Given below are the blended returns for four different types of investors with varying allocation to equity funds.

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    Four types of funds offered by NPS are - Ultra safe, Conservative, Balanced and Aggressive.
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    National Pension System (NPS) offers different types of funds to suit the needs of different types of investors. An investor can choose the fund type as per his/her risk profile.

    Four types of funds offered by NPS are - Ultra safe, Conservative, Balanced and Aggressive. Given below are the blended returns for four different types of investors with varying allocation to equity funds.

    Ultra safe
    Asset Mix
    Investors with no exposure to equities have earned the highest returns. LIC Pension Fund remains the best option, having delivered double-digit returns in past 3-5 years.
    NPS-Ultra-safe-bccl

    Conservative
    Asset Mix
    • Gilt funds: 50%
    • Corporate bond fund: 30%
    • Equity: 20%
    Conservative investors also did well, thanks to falling interest rates. Newcomer Aditya Birla Sun Life stood at top. Long-term bonds rose sharply, making up for the fall in equities.
    NPS-Conservative-BCCL

    Balanced
    Asset Mix

    • Gilt funds: 33.3%
    • Corporate bond fund: 33.3%
    • Equity: 33.3%
    Investors with a balanced mix suffered some pain due to the fall in equities. The returns earned in past 3-5 years are misleading. SIP returns during the same time have not been so great.
    NPS-Balanced-BCCL

    Aggressive
    Asset Mix
    • Gilt funds: 20%
    • Corporate bond fund: 30%
    • Equity: 50%
    Aggressive investors with 50% in equities lost money. Now that up to 75% can be invested in equity, some would have lost more. Aditya Birla SL Pension Fund was the top performer.
    NPS-Aggressive-BCCL

    Returns of the best performing schemes have been highlighted
    3-year and 5-year returns are annualised. Data as on 18 May 2020 | Source: Value Research

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