6 days ago
HDFC Pension Leads NPS Scheme E Returns Over 10 Years
The National Pension System helps people save money for retirement.
Scheme E is the part of NPS that invests mostly in shares of companies.
Shares can grow faster than some other investments, but their value can also fall.
Over the past 10 years, HDFC Pension had the best reported Scheme E returns among the listed fund managers.
It earned about 13% per year for both government and non-government subscribers.
The benchmark, which is used for comparison, returned 13.12% in the government-sector data.
Past returns do not promise that HDFC or any other fund will perform best in the future.
Investors should also consider risk, consistency and how close they are to retirement before choosing or changing a fund manager.
HDFC Pension delivered the highest 10-year Scheme E Tier-I return among the listed pension funds.
Its annualized return was 13.01% for government-sector subscribers and 12.99% for non-government subscribers.
The government-sector benchmark return was 13.12%, compared with 12.90% for ICICI and 12.75% for Kotak.
Scheme E invests mainly in equities, offering higher growth potential but market-linked risk and no guaranteed returns.
Investors are advised to assess consistency, volatility, downside protection and risk-adjusted returns instead of chasing short-term leaders.
- Who
- HDFC Pension and other registered NPS Pension Fund Managers, including ICICI, Kotak, UTI, LIC and SBI.
- What
- A comparison of 10-year returns for NPS Scheme E Tier-I equity portfolios.
- Where
- Within India's National Pension System, covering government and non-government subscriber sectors.
- When
- The data was published by NPS Trust as of August 25, 2026.
- Why
- To identify long-term-performing fund managers and explain what investors should consider beyond headline returns.
Key facts
- Top government-sector performer
- HDFC Pension, with a 13.01% annualized 10-year return.
- Top non-government performer
- HDFC Pension, with a 12.99% annualized 10-year return.
- Government-sector benchmark
- 13.12%.
- HDFC return since inception
- 13.93% for the government-sector portfolio and 13.91% for the non-government portfolio.
- Scheme E focus
- Predominantly equity and equity-related investments intended for long-term capital appreciation.
- Fund-switching rule
- PFRDA currently states that subscribers can change their Pension Fund once a year, subject to applicable rules.
- Investment warning
- NPS returns are market-linked, not guaranteed, and past performance does not guarantee future results.
Quotes
Vishwajeet Goel
Head of Pensionbazaar
“Investors should examine whether the underperformance is consistent across different market conditions, whether it is significant relative to the benchmark and peer group, and whether the fund’s risk profile or investment approach has changed.”
financialexpress.com
“In a rising market, most equity-oriented portfolios may generate strong returns; the greater test of a fund manager’s approach is how consistently it performs across different market cycles and how effectively it manages downside risk.”
financialexpress.com
Sources
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