{"id":8213,"date":"2026-10-26T12:37:16","date_gmt":"2026-10-26T07:07:16","guid":{"rendered":"https:\/\/1finance.co.in\/1f-dashboard\/?post_type=blog&p=8213"},"modified":"2026-10-26T12:40:46","modified_gmt":"2026-10-26T07:10:46","slug":"dsp-pension-fund-nps-review","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/dsp-pension-fund-nps-review\/","title":{"rendered":"DSP Pension Fund NPS review: returns, portfolio and fees (2026)"},"content":{"rendered":"

DSP Pension Fund Managers is the newest NPS pension fund. It started running money in December 2023, so it has under three years of history and only a 1-year record to compare. Its regular Tier I E, C and G schemes hold about \u20b97,500 crore, the smallest of the ten.<\/p>\n

On that short record, its equity scheme had the weakest year of all ten funds, its corporate bond scheme sits in the upper half, and it takes the most credit risk.<\/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\u20b93,467 crore<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n
Scheme C (corporate bonds)<\/td>\n\u20b91,587 crore<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n
Scheme G (government bonds)<\/td>\n\u20b92,419 crore<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Returns for Tier I as on 18 September 2026; assets from Value Research, October 2026. “\u2013” means the fund has not completed that period.<\/em><\/p>\n

Scheme E (equity)<\/h2>\n\n\n\n\n\n\n
Period<\/th>\nDSP<\/th>\nBenchmark<\/th>\nAverage of all funds<\/th>\nRank<\/th>\n<\/tr>\n<\/thead>\n
1 year<\/td>\n-9.21%<\/td>\n-3.95%<\/td>\n-5.09%<\/td>\n10 of 10<\/td>\n<\/tr>\n
Since inception<\/td>\n7.22%<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

DSP’s equity scheme returned -9.21% over the year to 18 September 2026, the weakest of all ten funds and 5.26 percentage points below the benchmark. Since launch, it has returned 7.22% a year.<\/p>\n

It also holds the least equity of the ten: 89.87%, with 4.80% in debt, 3.22% in REITs and 2.11% in cash. Holding less equity would normally soften a falling market, so the weak year came from what the scheme held rather than how much of it was in shares.<\/p>\n

Scheme C (corporate bonds)<\/h2>\n\n\n\n\n\n\n
Period<\/th>\nDSP<\/th>\nBenchmark<\/th>\nAverage of all funds<\/th>\nRank<\/th>\n<\/tr>\n<\/thead>\n
1 year<\/td>\n5.42%<\/td>\n4.90%<\/td>\n5.26%<\/td>\n4 of 10<\/td>\n<\/tr>\n
Since inception<\/td>\n7.51%<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The corporate bond scheme ranked fourth of ten over the past year, beating the benchmark. Since launch, it has returned 7.51% a year.<\/p>\n

DSP takes the most credit risk of the ten: 21.49% of the portfolio is AA-rated, against 71.68% AAA. That is the highest AA share in NPS. It raises the return while no bond defaults, which is why a longer record will tell more.<\/p>\n

Scheme G (government bonds)<\/h2>\n\n\n\n\n\n\n
Period<\/th>\nDSP<\/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
Since inception<\/td>\n6.40%<\/td>\n\u2013<\/td>\n\u2013<\/td>\n\u2013<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The government bond scheme tied for eighth over the past year, below the benchmark. The portfolio is 90.18% sovereign and the most concentrated of the ten: its largest holding, a 7.71% government bond maturing in 2066, is 20.44% of the fund.<\/p>\n

MSF schemes<\/h2>\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
Long Term Equity – I<\/td>\n0%-100%<\/td>\n18.95<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

Long Term Equity can hold anything from 0% to 100% in equity, with up to 20% in bonds and alternative assets. It had \u20b919 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