Archive · 6 Sep 2025
NPS Scheme A: High Returns with Elevated Risk
Scheme A is a high-risk investment option within the National Pension System (NPS), offering potentially high returns by investing in things like real estate and infrastructure.
Over the last year, some funds did very well, but there are risks involved.
It's limited to 5% of your NPS investments.
Scheme A invests in specialized assets like AT1 bonds and REITs, which can be risky, particularly if the issuing company faces financial troubles.
The small size of the Scheme A limits how diversified the investments can be.
For people already investing heavily in stocks, it could be a small addition.
However, for those who prefer safer investments, it may be best to avoid Scheme A altogether.
Scheme A, within NPS, delivered up to 25% returns in the last year.
It invests in high-risk assets such as REITs, InvITs, and AT1 bonds.
Exposure is capped at 5% of the subscriber's corpus in the active choice option.
Returns are tied to interest rates, infrastructure demand, and economic growth.
Scheme A may suit higher-risk investors; others should consider alternatives.
- Who
- NPS subscribers
- What
- Performance and risks of Scheme A investments.
- When
- Over the last one year and long term.
- Where
- India
- Why
- To assess if Scheme A is suitable for investors.
- Scheme A Returns (1 Year)
- Up to 25%
- Scheme A Asset Classes
- AT1 bonds, REITs, InvITs
- Max Allocation (NPS)
- 5% of subscriber's corpus
- Total Corpus in Scheme A
- ~₹800 crore
- Leading Fund Managers
- HDFC, SBI, ICICI Pru