What’s new in NPS: How retirement income scheme (RIS) changes NPS withdrawal rules
By Tejashree Satpute
NPS
Jun 5, 2026
HDFC Pension Management is the largest private pension fund in NPS. It managed ₹1,56,007 crore at 31 March 2026, with a 43.1% share of corporate and retail NPS assets, according to its annual report. Of the money in the ten funds’ regular Tier I E, C and G schemes, it holds about 42%.
Size doesn’t decide returns, though. HDFC has the best long-term record in corporate bonds, a strong 10-year equity record, and an average record in government bonds.
At a glance
| Scheme (Tier I) | Assets | 3-year return (rank) | 5-year return (rank) | 10-year return (rank) |
|---|---|---|---|---|
| Scheme E (equity) | ₹80,757 crore | 8.17% (5 of 9) | 8.25% (5 of 7) | 12.14% (1 of 6) |
| Scheme C (corporate bonds) | ₹37,054 crore | 7.71% (1 of 9) | 6.67% (1 of 7) | 7.85% (1 of 6) |
| Scheme G (government bonds) | ₹57,601 crore | 6.06% (7 of 9) | 5.50% (6 of 7) | 6.99% (3 of 6) |
Returns for Tier I as on 18 September 2026; assets from Value Research, October 2026. Rank is among funds with a record for that period.
Scheme E (equity)
| Period | HDFC | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | -4.54% | -3.95% | -5.09% | 5 of 10 |
| 3 years | 8.17% | 8.56% | 8.10% | 5 of 9 |
| 5 years | 8.25% | 8.76% | 8.44% | 5 of 7 |
| 7 years | 13.64% | 14.05% | 13.42% | 3 of 7 |
| 10 years | 12.14% | 12.37% | 11.55% | 1 of 6 |
| Since inception | 13.41% | – | – | – |
HDFC has the best 10-year equity return of all ten funds, at 12.14%. It still trails the benchmark (12.37%) over that period, as every fund does.
The more recent picture is weaker. Over 3 and 5 years, HDFC ranks fifth and trails the benchmark. Tata leads over 3 years and ICICI Prudential over 5. The scheme is almost fully invested, with 97.61% in equity.
HDFC’s Scheme E holds ₹80,757 crore, about 46% of all Scheme E Tier I money. That is more than the next two funds combined.
Scheme C (corporate bonds)
| Period | HDFC | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | 5.35% | 4.90% | 5.26% | 6 of 10 |
| 3 years | 7.71% | 7.05% | 7.50% | 1 of 9 |
| 5 years | 6.67% | 6.19% | 6.43% | 1 of 7 |
| 7 years | 7.64% | 7.48% | 7.33% | 1 of 7 |
| 10 years | 7.85% | 7.59% | 7.52% | 1 of 6 |
| Since inception | 8.96% | – | – | – |
This is HDFC’s strongest scheme. It ranks first over 3, 5, 7 and 10 years, and is the only fund to beat the benchmark over 7 years.
It takes more credit risk than most to get there. The portfolio is 78.49% AAA-rated and 17.26% AA-rated, the second-highest AA share among the ten. Its largest holdings include bonds of the National Bank for Financing Infrastructure and Development, Axis Bank and Reliance Industries.
Scheme G (government bonds)
| Period | HDFC | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | 2.82% | 3.43% | 2.93% | 7 of 10 |
| 3 years | 6.06% | 6.75% | 6.25% | 7 of 9 |
| 5 years | 5.50% | 5.90% | 5.73% | 6 of 7 |
| 7 years | 6.52% | 6.41% | 6.55% | 4 of 7 (tied) |
| 10 years | 6.99% | 6.86% | 7.07% | 3 of 6 |
| Since inception | 8.33% | – | – | – |
HDFC’s government bond scheme is middle of the pack. It ranks third over 10 years but seventh over 3 years and sixth over 5. LIC, SBI and Aditya Birla Sun Life have better records here.
The portfolio is 91.53% sovereign. Its largest holding is a 7.34% government bond maturing in 2064, at 11.02% of the fund.
MSF schemes
| Scheme (as listed by NPS Trust) | Equity range | Assets (₹ crore) |
|---|---|---|
| Equity Advantage – I | 85%-100% | 359.37 |
| Surakshit Income – I | 55%-75% | 141.14 |
| Surakshit Income – II | 0%-25% | 12.73 |
NPS Trust, as on 30 September 2026.
HDFC dominates the Multiple Scheme Framework. Its three schemes hold ₹513 crore, about 48% of all MSF money, and Equity Advantage is the largest MSF scheme in NPS. HDFC’s annual report says it had onboarded 1.77 lakh MSF subscribers by March 2026. See the MSF comparison for all 20 schemes.
Fees
From 1 April 2026, the investment management fee on regular non-government NPS schemes is slab-based: 0.12% a year on the first ₹25,000 crore of assets, then 0.08%, 0.06% and 0.04% on higher slabs. HDFC’s size puts much of its money in the lower slabs. MSF schemes can charge up to 0.30%.
Verdict
- Scheme C: the strongest long-term record of all ten funds.
- Scheme E: best over 10 years, but fifth over 3 and 5 years.
- Scheme G: average; LIC has the better record.
- Auto choice: a sound single choice. HDFC doesn’t rank last in any scheme over any period.
- Active choice: HDFC is a natural pick for Scheme C. You can pair it with a different fund for E or G, up to three pension funds in all.
Compare it with the rest in the Scheme E, Scheme C and Scheme G comparisons.
Sources: returns for Tier I as on 18 September 2026, NPS Trust data as published by HDFC Securities. Net assets and portfolios: Value Research, October 2026. Total assets, market share and MSF subscribers: HDFC Pension annual report, FY2025-26. MSF schemes: NPS Trust. Fees: PFRDA. Past returns do not guarantee future returns.
