Planning for retirement helps you not be dependent on your family and lowers their financial burden as well. While there are several options to invest when retirement planning is in question, it is advisable to consider the National Pension System (NPS) for additional security. This voluntary government pension scheme provides you with the opportunity to leverage market-linked returns, which can be potentially higher than other investment options.
In addition, it offers a boost to your retirement income by delivering regular payouts during the non-working years of your life. You can also choose the pension funds in which you want to invest your NPS contributions. For this, it is essential to study the returns provided by these pension funds in recent years and understand the portfolio that these funds offer.
To help you, we have listed the 5 best performing national pension scheme funds based on their 3-year returns.
LIC Pension Fund Scheme E – Tier II
The LIC Pension Fund Scheme E – Tier II operates via the NPS Tier II account and has offered the highest 3-year returns in this list of top 5 national pension scheme funds. This pension fund has offered a 3-year return of 22.40 per cent. It currently has an NAV of Rs 28.49, which suggests a 14.70 per cent increase in value in the last one year. However, its 5-year stands at 14.40 per cent, which is not as impressive as the other metrics.
ICICI Prudential Pension Fund Scheme E – Tier II
The ICICI Prudential Pension Fund Scheme E – Tier II operates via the NPS Tier II account and boasts a significant 3-year return of 22.30 per cent. Currently, the 1-year returns stand at 17.40 per cent. The current NAV is Rs 42.75. The 5-year returns have been recorded at 15.30 per cent, which is higher than that of the LIC Pension Fund Scheme.
LIC Pension Fund Scheme E – Tier I
LIC Pension Fund Scheme E – Tier I operates via the mandatory NPS Tier I account and has provided a 3-year return of 22.30 per cent, similar to the ICICI Prudential Pension Fund Scheme. The 1-year return of the fund stands at 15.40 per cent. The 5-year returns are recorded to be 14.40 per cent, aligning with the Tier II fund’s returns.
ICICI Prudential Pension Fund Scheme E – Tier I
The ICICI Prudential Pension Fund Scheme E – Tier I makes investments using the mandatory NPS Tier I account. The fund has an impressive 3-year return of 22.10 per cent. Its NAV is Rs 53.72, representing a 1-year increase of 16.70 per cent. Moreover, the 5-year returns stand at 15.10 per cent.
Kotak Pension Fund Scheme E – Tier I
The Kotak Pension Fund Scheme E – Tier I works by investing via the obligatory NPS Tier I account. It boasts a substantial 3-year return of 21.80 per cent. Its NAV currently stands at Rs 49.84 with a 1-year return of 16.40 percent and a 5-year return of 15.20 per cent.