{"id":8210,"date":"2026-10-26T12:36:56","date_gmt":"2026-10-26T07:06:56","guid":{"rendered":"https:\/\/1finance.co.in\/1f-dashboard\/?post_type=blog&p=8210"},"modified":"2026-10-26T15:50:55","modified_gmt":"2026-10-26T10:20:55","slug":"kotak-pension-fund-nps-review","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/kotak-pension-fund-nps-review\/","title":{"rendered":"Kotak Pension Fund NPS review: returns, portfolio and fees (2026)"},"content":{"rendered":"

Kotak Mahindra Pension Fund is one of the original NPS pension funds, running money since 2009. It is small, with about \u20b99,300 crore in its regular Tier I E, C and G schemes.<\/p>\n

Its record is lopsided. Kotak is among the best in equity over the long run and the weakest of all ten funds in government bonds.<\/p>\n

At a glance<\/h2>\n\n\n\n\n\n\n\n
Scheme (Tier I)<\/th>\nAssets<\/th>\n3-year return (rank)<\/th>\n5-year return (rank)<\/th>\n10-year return (rank)<\/th>\n<\/tr>\n<\/thead>\n
Scheme E (equity)<\/td>\n\u20b94,609 crore<\/td>\n8.34% (4 of 9)<\/td>\n8.86% (2 of 7)<\/td>\n11.90% (3 of 6)<\/td>\n<\/tr>\n
Scheme C (corporate bonds)<\/td>\n\u20b91,804 crore<\/td>\n7.66% (2 of 9)<\/td>\n6.44% (4 of 7)<\/td>\n7.23% (6 of 6)<\/td>\n<\/tr>\n
Scheme G (government bonds)<\/td>\n\u20b92,923 crore<\/td>\n5.85% (9 of 9)<\/td>\n5.48% (7 of 7)<\/td>\n6.87% (6 of 6)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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.<\/em><\/p>\n

Scheme E (equity)<\/h2>\n\n\n\n\n\n\n\n\n\n\n
Period<\/th>\nKotak<\/th>\nBenchmark<\/th>\nAverage of all funds<\/th>\nRank<\/th>\n<\/tr>\n<\/thead>\n
1 year<\/td>\n-6.04%<\/td>\n-3.95%<\/td>\n-5.09%<\/td>\n6 of 10 (tied)<\/td>\n<\/tr>\n
3 years<\/td>\n8.34%<\/td>\n8.56%<\/td>\n8.10%<\/td>\n4 of 9<\/td>\n<\/tr>\n
5 years<\/td>\n8.86%<\/td>\n8.76%<\/td>\n8.44%<\/td>\n2 of 7<\/td>\n<\/tr>\n
7 years<\/td>\n13.85%<\/td>\n14.05%<\/td>\n13.42%<\/td>\n2 of 7<\/td>\n<\/tr>\n
10 years<\/td>\n11.90%<\/td>\n12.37%<\/td>\n11.55%<\/td>\n3 of 6<\/td>\n<\/tr>\n
Since inception<\/td>\n11.41%<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Kotak ranks second over 5 and 7 years and third over 10 years. It beat the benchmark over 5 years (8.86% against 8.76%). Over 3 years it ranks fourth, slightly below the benchmark.<\/p>\n

The past year was harder. Kotak tied for sixth at -6.04% as on 18 September, and its 1-year return had fallen to -12.37% by 23 October (Value Research).<\/p>\n

The portfolio is 98.37% equity. Its top holdings are HDFC Bank (8.51%), ICICI Bank (6.13%), Infosys (4.60%), State Bank of India (3.80%), Reliance Industries (3.62%) and Sun Pharmaceutical (3.38%). Financial stocks are 34.20% of the portfolio, industrials 13.74% and technology 12.93%.<\/p>\n

Scheme C (corporate bonds)<\/h2>\n\n\n\n\n\n\n\n\n\n\n
Period<\/th>\nKotak<\/th>\nBenchmark<\/th>\nAverage of all funds<\/th>\nRank<\/th>\n<\/tr>\n<\/thead>\n
1 year<\/td>\n5.76%<\/td>\n4.90%<\/td>\n5.26%<\/td>\n1 of 10<\/td>\n<\/tr>\n
3 years<\/td>\n7.66%<\/td>\n7.05%<\/td>\n7.50%<\/td>\n2 of 9<\/td>\n<\/tr>\n
5 years<\/td>\n6.44%<\/td>\n6.19%<\/td>\n6.43%<\/td>\n4 of 7<\/td>\n<\/tr>\n
7 years<\/td>\n7.09%<\/td>\n7.48%<\/td>\n7.33%<\/td>\n7 of 7<\/td>\n<\/tr>\n
10 years<\/td>\n7.23%<\/td>\n7.59%<\/td>\n7.52%<\/td>\n6 of 6<\/td>\n<\/tr>\n
Since inception<\/td>\n9.01%<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Kotak’s corporate bond scheme looks best on short periods and worst on long ones. It ranks first over 1 year and second over 3 years. But it ranks last over 7 and 10 years, and its 10-year return of 7.23% trails the benchmark (7.59%).<\/p>\n

The portfolio is 77.96% AAA-rated and 16.88% AA-rated, the third-highest AA share among the ten. It also holds 3.75% in REITs.<\/p>\n

Scheme G (government bonds)<\/h2>\n\n\n\n\n\n\n\n\n\n\n
Period<\/th>\nKotak<\/th>\nBenchmark<\/th>\nAverage of all funds<\/th>\nRank<\/th>\n<\/tr>\n<\/thead>\n
1 year<\/td>\n2.68%<\/td>\n3.43%<\/td>\n2.93%<\/td>\n8 of 10 (tied)<\/td>\n<\/tr>\n
3 years<\/td>\n5.85%<\/td>\n6.75%<\/td>\n6.25%<\/td>\n9 of 9<\/td>\n<\/tr>\n
5 years<\/td>\n5.48%<\/td>\n5.90%<\/td>\n5.73%<\/td>\n7 of 7<\/td>\n<\/tr>\n
7 years<\/td>\n6.33%<\/td>\n6.41%<\/td>\n6.55%<\/td>\n7 of 7<\/td>\n<\/tr>\n
10 years<\/td>\n6.87%<\/td>\n6.86%<\/td>\n7.07%<\/td>\n6 of 6<\/td>\n<\/tr>\n
Since inception<\/td>\n8.00%<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This is Kotak’s weak spot. It ranks last over 3, 5, 7 and 10 years. Over 10 years, \u20b91 lakh grew to about \u20b91.94 lakh, against \u20b92.09 lakh with LIC.<\/p>\n

The portfolio is 88.92% sovereign, with 8.52% in cash and a small 0.82% rated A or below. Its largest holding is a 6.90% government bond maturing in 2065, at 11.03% of the fund.<\/p>\n

MSF schemes<\/h2>\n\n\n\n\n\n\n
Scheme (as listed by NPS Trust)<\/th>\nEquity range<\/th>\nAssets (\u20b9 crore)<\/th>\n<\/tr>\n<\/thead>\n
Kuber Equity – I<\/td>\n80%-100%<\/td>\n40.74<\/td>\n<\/tr>\n
Atmanirbhar Fund<\/td>\n25%-75%<\/td>\n0.64<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

NPS Trust, as on 30 September 2026.<\/em><\/p>\n

Kuber Equity holds 80% to 100% in equity and has \u20b941 crore. Atmanirbhar, a balanced scheme with 25% to 75% equity, had less than \u20b91 crore. See the MSF comparison<\/a>.<\/p>\n

Fees<\/h2>\n

From 1 April 2026, the investment management fee on regular non-government NPS schemes is slab-based: 0.12% a year on the first \u20b925,000 crore of assets, then 0.08%, 0.06% and 0.04% on higher slabs. MSF schemes can charge up to 0.30%.<\/p>\n

Verdict<\/h2>\n