How to Calculate NPS Returns?
NPS
Jan 7, 2025
Aditya Birla Sun Life Pension Management, part of the Aditya Birla Capital group, has run NPS money since 2017. Its regular Tier I E, C and G schemes hold about ₹8,600 crore, with the largest share in government bonds.
With about nine years of history, it doesn’t have a 10-year record yet. Over the periods it does have, it leads in government bonds, sits mid-table in equity and trails in corporate bonds.
At a glance
| Scheme (Tier I) | Assets | 3-year return (rank) | 5-year return (rank) | 10-year return (rank) |
|---|---|---|---|---|
| Scheme E (equity) | ₹3,068 crore | 8.02% (6 of 9) | 8.45% (4 of 7) | – |
| Scheme C (corporate bonds) | ₹2,061 crore | 7.33% (8 of 9) | 6.35% (6 of 7) | – |
| Scheme G (government bonds) | ₹3,480 crore | 6.54% (1 of 9) | 5.98% (1 of 7) | – |
Returns for Tier I as on 18 September 2026; assets from Value Research, October 2026. “–” means the fund has not completed that period.
Scheme G (government bonds)
| Period | Aditya Birla Sun Life | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | 3.14% | 3.43% | 2.93% | 2 of 10 (tied) |
| 3 years | 6.54% | 6.75% | 6.25% | 1 of 9 |
| 5 years | 5.98% | 5.90% | 5.73% | 1 of 7 |
| 7 years | 6.73% | 6.41% | 6.55% | 1 of 7 |
| Since inception | 7.37% | – | – | – |
This is Aditya Birla Sun Life’s standout scheme. It ranks first over 3, 5 and 7 years, and joint second over 1 year. It is the only fund of the ten to beat the benchmark over 5 years.
The portfolio is 88.87% sovereign, with 5.07% in AAA-rated bonds and the rest in cash and debt funds. Its largest holding is a 7.71% government bond maturing in 2066, at 8.81% of the fund, which makes it one of the less concentrated G portfolios.
Scheme E (equity)
| Period | Aditya Birla Sun Life | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | -2.77% | -3.95% | -5.09% | 1 of 10 (tied) |
| 3 years | 8.02% | 8.56% | 8.10% | 6 of 9 |
| 5 years | 8.45% | 8.76% | 8.44% | 4 of 7 |
| 7 years | 13.22% | 14.05% | 13.42% | 5 of 7 |
| Since inception | 11.63% | – | – | – |
The equity scheme had a good past year, tying with ICICI Prudential for the best 1-year return (-2.77%, against the benchmark’s -3.95%). Over longer periods it is mid-table: sixth of nine over 3 years, fourth of seven over 5 years, fifth of seven over 7 years. It trailed the benchmark over each of those periods.
The portfolio is 97.96% equity. At about ₹3,070 crore, its Scheme E book is the smallest of the ten.
Scheme C (corporate bonds)
| Period | Aditya Birla Sun Life | Benchmark | Average of all funds | Rank |
|---|---|---|---|---|
| 1 year | 4.76% | 4.90% | 5.26% | 10 of 10 |
| 3 years | 7.33% | 7.05% | 7.50% | 8 of 9 |
| 5 years | 6.35% | 6.19% | 6.43% | 6 of 7 |
| 7 years | 7.32% | 7.48% | 7.33% | 4 of 7 |
| Since inception | 8.00% | – | – | – |
Aditya Birla Sun Life runs the safest corporate bond portfolio in NPS: 89.08% AAA-rated and only 6.68% AA-rated. Its largest holdings are bonds of Power Grid, ICICI Prudential and HDFC Bank.
That caution costs return. The scheme ranks last over 1 year and eighth of nine over 3 years. It does better over longer periods, fourth of seven over 7 years, and beat the benchmark over 3 and 5 years.
MSF schemes
| Scheme (as listed by NPS Trust) | Equity range | Assets (₹ crore) |
|---|---|---|
| Secure Retirement Equity – I | 90%-100% | 13.91 |
| Secure Future – I | 40%-65% | 7.93 |
NPS Trust, as on 30 September 2026.
Secure Retirement Equity holds 90% to 100% in equity. Secure Future is a balanced scheme with 40% to 65%. Together they hold ₹22 crore. 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 G: the best record over 3, 5 and 7 years; no 10-year record yet.
- Scheme E: mid-table over the long periods, despite a strong past year.
- Scheme C: the safest credit mix, with returns in the lower half.
- Active choice: a strong candidate for Scheme G, alongside LIC, which has the best 10-year record. You can hold up to three pension funds, one per asset class.
- Auto choice: a reasonable choice in your 50s, when government bonds are most of the account.
Compare it with the rest in the Scheme G, Scheme E and Scheme C 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.
