What is Tier 1 NPS?
NPS
Jan 19, 2025
ICICI Prudential Pension Funds Management has run NPS money since 2009. Its regular Tier I E, C and G schemes hold about ₹71,700 crore, the third largest among the ten pension funds.
It has the most consistent equity record in NPS. Its corporate bond scheme is solid, and its government bond scheme is average.
At a glance
| Scheme (Tier I) | Assets | 3-year return (rank) | 5-year return (rank) | 10-year return (rank) |
|---|---|---|---|---|
| Scheme E (equity) | ₹31,743 crore | 9.17% (2 of 9) | 9.22% (1 of 7) | 12.05% (2 of 6) |
| Scheme C (corporate bonds) | ₹15,287 crore | 7.54% (5 of 9) | 6.46% (3 of 7) | 7.62% (2 of 6 (tied)) |
| Scheme G (government bonds) | ₹24,703 crore | 6.31% (5 of 9) | 5.69% (5 of 7) | 6.96% (4 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 | ICICI Prudential | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | -2.77% | -3.95% | -5.09% | 1 of 10 (tied) |
| 3 years | 9.17% | 8.56% | 8.10% | 2 of 9 |
| 5 years | 9.22% | 8.76% | 8.44% | 1 of 7 |
| 7 years | 14.21% | 14.05% | 13.42% | 1 of 7 |
| 10 years | 12.05% | 12.37% | 11.55% | 2 of 6 |
| Since inception | 12.05% | – | – | – |
ICICI Prudential ranks first over 5 and 7 years, second over 3 and 10 years, and joint first over 1 year. No other fund stays in the top two across all of 3, 5, 7 and 10 years.
It beat the benchmark over 1, 3, 5 and 7 years. Over 10 years it trails by 0.32 percentage points, which still puts it second. It is the only fund to beat the benchmark over 7 years.
The portfolio holds less equity than most: 93.71%, with 3.29% in cash (held through overnight and liquid funds) and 1.55% in REITs. That buffer helps in falls like the past year’s.
Scheme E holds ₹31,743 crore, the second-largest book after HDFC.
Scheme C (corporate bonds)
| Period | ICICI Prudential | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | 5.39% | 4.90% | 5.26% | 5 of 10 |
| 3 years | 7.54% | 7.05% | 7.50% | 5 of 9 |
| 5 years | 6.46% | 6.19% | 6.43% | 3 of 7 |
| 7 years | 7.29% | 7.48% | 7.33% | 5 of 7 |
| 10 years | 7.62% | 7.59% | 7.52% | 2 of 6 (tied) |
| Since inception | 9.26% | – | – | – |
ICICI Prudential’s corporate bond record is solid rather than leading. It ranks joint second over 10 years with SBI, third over 5 years and fifth over 3 and 7 years. It beat the benchmark over 3, 5 and 10 years.
The portfolio is 78.41% AAA-rated and 16.12% AA-rated. Its largest holdings include bonds of Bajaj Finance, Reliance Industries and Larsen & Toubro.
Scheme G (government bonds)
| Period | ICICI Prudential | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | 3.20% | 3.43% | 2.93% | 1 of 10 |
| 3 years | 6.31% | 6.75% | 6.25% | 5 of 9 |
| 5 years | 5.69% | 5.90% | 5.73% | 5 of 7 |
| 7 years | 6.48% | 6.41% | 6.55% | 6 of 7 |
| 10 years | 6.96% | 6.86% | 7.07% | 4 of 6 |
| Since inception | 8.09% | – | – | – |
The government bond scheme had the best 1-year return of all ten funds (3.20%), but ranks fifth or sixth over 3, 5 and 7 years and fourth over 10.
Its portfolio stands out in two ways. It has the lowest sovereign share of the ten, at 86.80%, with 8.38% in unrated or other holdings. And its largest holding is a 6.94% government bond maturing in 2036, much shorter than the 2050s and 2060s bonds most peers hold at the top. Shorter bonds fall less when rates rise, which fits its better 1-year return.
MSF schemes
| Scheme (as listed by NPS Trust) | Equity range | Assets (₹ crore) |
|---|---|---|
| DREAM – I | 50%-100% | 160.28 |
| My Family – I | 50%-85% | 88.21 |
NPS Trust, as on 30 September 2026.
ICICI Prudential is the second-largest MSF manager, with ₹248 crore and about 23% of all MSF money. DREAM allows 50% to 100% equity; My Family is a balanced scheme with 50% to 85%. See the MSF comparison.
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. MSF schemes can charge up to 0.30%.
Verdict
- Scheme E: the most consistent record of all ten funds.
- Scheme C: solid; among the top three over 5 and 10 years.
- Scheme G: average over the long run.
- Active choice: a strong pick for Scheme E. For government bonds, LIC and Aditya Birla Sun Life have better records. You can hold up to three pension funds, one per asset class.
- Auto choice: a good single choice for younger subscribers, when equity is the biggest part of the account.
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. MSF schemes: NPS Trust. Fees: PFRDA. Past returns do not guarantee future returns.
