NPS (National Pension System) — Fund Manager Comparison 2026
Compare NPS fund managers by returns, AUM, and ratings. Government-backed retirement savings with extra tax benefits of up to ₹2 lakh.
NPS Fund Manager Returns (Tier I — Equity)
| Fund Manager | 1Y Return | 3Y Return | 5Y Return | AUM (₹ Cr) | Rating |
|---|---|---|---|---|---|
 | 15% | 13.5% | 12.2% | 1,20,000 | 4.5 |
I ICICI Prudential Pension Fund | 14.8% | 13.3% | 12% | 1,10,000 | 4.4 |
U UTI Retirement Solutions | 14.5% | 13.1% | 11.8% | 95,000 | 4.4 |
K Kotak Mahindra Pension Fund | 14.6% | 13% | 11.7% | 85,000 | 4.3 |
A Aditya Birla Sun Life Pension | 14.3% | 12.9% | 11.6% | 68,000 | 4.2 |
 | 14.2% | 12.8% | 11.5% | 4,25,000 | 4.5 |
L LIC Pension Fund | 13.8% | 12.2% | 10.9% | 1,85,000 | 4.3 |
Returns shown are for Tier I Equity (E) asset class. Past performance does not guarantee future results. Returns are annualized and based on NAV data. Actual returns will vary based on your asset allocation across E, C, G, and A classes.
Key Features of NPS
- Government-backed retirement savings scheme regulated by PFRDA
- Tax deduction up to ₹2 lakh (₹1.5L under 80C + ₹50K under 80CCD(1B))
- Choose your own asset allocation — Equity (E), Corporate Bonds (C), Government Securities (G), Alternative (A)
- Very low fund management charges — 0.01% to 0.09%, among the lowest in India
- 7 professional fund managers to choose from
- Two account types — Tier 1 (mandatory, with lock-in) and Tier 2 (voluntary, no lock-in)
- Employer co-contribution gets additional tax benefit under Section 80CCD(2)
- 60% of corpus at retirement is tax-free (lump sum withdrawal)
- Online account opening via eNPS portal
- Portable across jobs and locations
Advantages
- +Extra ₹50,000 tax deduction under 80CCD(1B) — over and above the ₹1.5L limit of Section 80C
- +Total tax benefit can go up to ₹2 lakh for salaried individuals
- +Lowest fund management charges in India (0.01% - 0.09%) compared to mutual funds (0.5% - 2%)
- +Choice of 7 fund managers — you can switch once a year
- +Flexible asset allocation between equity, bonds, and government securities
- +60% of corpus is tax-free at retirement (as lump sum)
- +Employer contribution gets separate tax benefit with no upper limit under 80CCD(2)
- +Market-linked returns with professional fund management
- +Portable across employers — your NPS account stays with you
Limitations
- -Money is locked until age 60 — very long lock-in period
- -Mandatory 40% annuity purchase at retirement — annuity rates in India are often low (5-6%)
- -Annuity income is fully taxable at your slab rate
- -Equity allocation capped at 75% (reduces to 50% by age 60 under Auto choice)
- -Partial withdrawal limited to 25% of own contributions, only 3 times, and only for specific reasons
- -Premature exit before 60 requires 80% annuity purchase (only 20% as lump sum)
- -Returns are market-linked and not guaranteed — unlike PPF
- -More complex than PPF or FD — requires choosing fund manager and asset allocation
NPS Tax Benefits Breakdown
Section 80CCD(1) — Employee Contribution
Up to ₹1.5 lakh under Section 80C (combined with other 80C investments)
Section 80CCD(1B) — Additional Deduction
Additional ₹50,000 deduction exclusively for NPS — over and above Section 80C limit
Section 80CCD(2) — Employer Contribution
Employer contribution up to 10% of salary (14% for central govt employees) — no upper cap, not part of 80C
Note: For a salaried person in the 30% tax bracket, NPS can save up to ₹62,400 in taxes (₹50,000 × 30% + cess under 80CCD(1B) alone). Combined with 80C, total tax savings can exceed ₹90,000. Tax benefits are subject to changes in tax laws.
Exit Rules at a Glance
60% lump sum (tax-free) + 40% annuity (mandatory)
20% lump sum + 80% annuity (mandatory)
Up to 25% of own contributions after 3 years, max 3 times
Compare Other Options
Disclaimer: NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority). Returns shown are for Tier I Equity asset class and are based on historical NAV data — past performance does not guarantee future results. Returns are market-linked and not guaranteed. Fund manager returns may vary across asset classes (E, C, G, A). Tax benefits are subject to changes in tax laws. Please verify all details with the NPS Trust or your Point of Presence (PoP) before investing. RupeeLens is a financial comparison platform. We do not provide financial advice.
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Important: Mutual fund investments are subject to market risks. Past performance does not guarantee future results. Please read all scheme-related documents carefully before investing.
RupeeLens is a financial comparison platform and does not provide investment advice as defined under SEBI (Investment Advisers) Regulations, 2013. The information displayed is for comparison purposes only. Full disclaimer