Retirement is no more a smooth and tension free period in today’s world. Employees from private as well as Government sectors need to plan well in advance to secure their post retirement life. EPF was the only proper instrument which aids in this process. With the introduction of NPS, retirement investment has entered the basket of equities. But, is this investment enough to secure your retirement life? Let us see how the top 3 NPS pension funds have performed.
1) ICICI Prudential Pension Fund
ICICI Prudential Pension Funds Management Company Limited is a fund manager for managing the funds collected under the NPS for Indian citizens other than government employees and is the only pension fund manager promoted by a life insurance company. It is a wholly owned subsidiary of ICICI Prudential Life Insurance Company Limited (Sponsor) which has a significant experience in managing long term investments of life and pension funds and an expertise in managing long term employee benefit funds and annuities for many corporate including PSUs.
The company began its operations in May 2009 after it was appointed by Pension Fund Regulatory and Development Authority (PFRDA) as a pension fund manager.
ICICI Group provides the following services under NPS:
- ICICI Bank Limited offers POP services through its designated branches. Customers can also use the online platform of icicidirect offered by ICICI Securities Limited to open and operate NPS accounts
- ICICI Prudential Pension Funds Management Company Limited is a fund manager under NPS.
- ICICI Prudential Life Insurance Company Limited is an annuity service provider appointed by PFRDA.
1 year – 8.67%
3 year – 8.75%
2) Kotak Pension Fund
Kotak Mahindra Pension Fund Ltd. (KMPFL) is a joint venture between Kotak Mahindra Asset Management Limited (“KMAMC”) and Kotak Mahindra Bank Ltd (“KMBL”).
KMPFL has been appointed as a Pension Fund Manager (PFM) by the Pension Fund Regulatory and Development Authority (“PFRDA”), on 30th April 2009 for managing the funds under National pension System (NPS). To know the fund value of your policy, you can send SMS “NAVL <8 digit policy number>” to 5676788.
3) SBI Pension fund
SBIPFPL is one of the 3 Pension Fund Managers appointed by Pension Fund Regulatory and Development Authority (PFRDA) in India to manage the pension corpus of employees enrolled under the New Pension System for Government Employees.
SBIPFPL has also been appointed as Pension Fund Manager along with 5 others to manage the pension corpus under the Citizens Pension Scheme. SBI Pension Funds Pvt. Ltd., as a subsidiary of SBI, inherits all the strengths of SBI. Depositors have trusted SBI with their funds for over 200 years. SBI have always lived up to this ‘Trust’. It has always provided ‘Highest Safety’ for depositors’ funds.
Average returns from SIPs in all the pension funds have been around 10-12% p.a ever since launch. Though it is not a long time since they have been in operation, this is an indication that good times are ahead for NPS contributors. This could also change the way people look at equity investment.