Archive · 16 Sep 2026
NPS Fund Manager Changes Require More Than Chasing Returns
The National Pension System helps people save money for retirement.
A pension fund manager invests that money in areas such as shares, company bonds and government securities.
Different managers can produce different results.
However, the manager with the best recent return may not stay the best.
People should compare performance over many years and against the proper benchmark.
They should also check how the manager handled difficult markets and controlled risk.
Someone close to retirement may need to adjust the mix of investments before changing managers.
A manager change is generally more reasonable when poor performance continues for a long time.
NPS subscribers can change their pension fund manager once in a financial year.
A switch may make sense after prolonged underperformance against benchmarks and comparable funds.
Investors are advised to assess consistency, risk management, difficult-market performance and portfolio quality.
Near retirement, reviewing the mix of equity, corporate bonds and government securities may be more important than changing managers.
Short-term rankings do not guarantee future results, so subscribers should avoid repeatedly chasing recent winners.
- Who
- NPS subscribers, pension fund managers and the Pension Fund Regulatory and Development Authority (PFRDA).
- What
- Guidance on when to change an NPS pension fund manager and when to remain invested with the current manager.
- When
- A pension fund manager can currently be changed once in a financial year; investment choice can be changed four times in a financial year.
- Where
- India, within the National Pension System.
- Why
- To help subscribers evaluate long-term performance, risk and asset allocation rather than making decisions based only on recent returns.
Consider Switching
Stay Put and Review Carefully
Long-term performance
Consider Switching
A subscriber may consider changing managers when the current manager has consistently underperformed its benchmark and comparable funds over a long period.
Stay Put and Review Carefully
Short-term underperformance or a temporary ranking change does not necessarily mean the manager will lag over the long term.
Recent top performers
Consider Switching
A manager with stronger recent returns may appear attractive to investors seeking better performance.
Stay Put and Review Carefully
Repeatedly moving to the latest winner can be risky because market conditions change and last year’s top manager may not lead the next year.
Approaching retirement
Consider Switching
A change may still be considered if the manager has persistently underperformed over a long period.
Stay Put and Review Carefully
Near retirement, reviewing the balance among equity, corporate bonds and government securities may matter more than changing the manager.
- Regulator
- Pension Fund Regulatory and Development Authority (PFRDA)
- Manager-change frequency
- Once in a financial year
- Investment-choice changes
- Four times in a financial year
- NPS asset classes
- Equity, corporate bonds, government securities and alternative assets
- Number of registered PFMs
- Ten, according to PFRDA
- Main switching signal
- Consistent underperformance against the benchmark and comparable funds over a long period
- Near-retirement priority
- Reviewing overall asset allocation and reducing unnecessary risk