How NPS funds have performed

Here are the returns of the NPS funds for four different types of investors having a varying allocation to the debt and equity.

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Conservative investors have suffered because bond yields shot up in the past six months.
These are blended returns for four different types of investors with varying allocation to equity funds.

Aggressive
The risk taken by aggressive investors has paid off handsomely.


Returns could be higher in future as the cap on equity exposure is now higher at 75% for susbscribers below 35.

Equity funds: 50%
Corporate Bond funds: 30%
Gilt funds: 20%
NPS-Aggressive

Balanced
Investors with a balanced mix are not far behind. But the double digit returns earned in past 3-5 years are misleading. SIP returns in past 3-5 years have not been so great.

Equity funds: 33.3%
Corporate Bond funds: 33.3%
Gilt funds: 33.3%
NPS-Balanced

Conservative
Conservative investors have suffered because bond yields shot up in the past six months. Gilt funds usually hold long-term bonds, which saw a steep fall in prices when rates went up.

Equity funds: 20%
Corporate Bond funds: 30%
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Gilt funds: 50%
NPS-Conservative

Ultra safe
Investors with no equity exposure earned the lowest returns. The LIC Pension Fund is the best option for such investors because of its rich experience in handling debt investments.

Corporate Bond funds: 40%
Gilt funds: 60%
NPS-Ultra-safe

6-month and 1-year are absolute, 3-year and 5-year returns are CAGR, and SIP returns are based on IRR.
Data as on 10 Apr 2019

Source: Value Research
Returns of the best performing schemes have been highlighted
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