Best NPS Funds: Rs 10,000 SIP Turns Into Lakhs Over 10 Years – Find Out How

The National Pension System (NPS) is increasingly popular for retirement planning, driven by long-term returns from Tier I equity mutual funds. With investment s tied to Nifty 50, these funds offer stability and solid returns over time. Here's a detailed look at six top-performing NPS funds, focusing on their 10-year Systematic Investment Plan (SIP) performance.

1. UTI Retirement Solutions - Scheme E - TIER I
UTI Retirement Solutions is a standout performer with an impressive 17.81% annualised SIP return over 10 years. With assets under management (AUM) of Rs 2,732 crore and a net asset value (NAV) of Rs 75.85, this fund has turned a Rs 10,000 monthly SIP into Rs 30.19 lakh. A significant 97.90% of its investments are in equity, ensuring strong returns by tracking the Nifty 50. Top holdings include major players like ICICI Bank, RIL, and HDFC Bank.

2. HDFC Pension Fund - Scheme E - TIER I
With a close 17.46% annualised return, HDFC Pension Fund also showcases strong SIP performance. The fund manages Rs 46,943 crore in AUM and has a NAV of Rs 75.85. Top holdings feature HDFC Bank, RIL, and Infosys, leading to a growth of Rs 29.63 lakh from a Rs 10,000 monthly SIP in the last decade.

3. ICICI Prudential Pension Fund - Scheme E - TIER I
ICICI Prudential Pension Fund has delivered 17.44% annualised returns over the past 10 years. A Rs 10,000 monthly SIP in this fund has grown to Rs 29.60 lakh. With Rs 16,994 crore in AUM, this fund invests predominantly in equity, with ICICI Bank, Infosys, and Bharti Airtel among its top holdings.

4. Kotak Pension Fund - Scheme E - TIER I
Kotak Pension Fund provides a 17.40% annualised return, turning a Rs 10,000 SIP into Rs 29.55 lakh. It manages Rs 2,598 crore in assets, with 94.08% equity exposure. Holdings include HDFC Bank, Tech Mahindra, and RIL, making it a solid choice for long-term investors.

5. LIC Pension Fund - Scheme E - TIER I
Although LIC Pension Fund has slightly lower returns at 16.51%, it remains a strong contender, growing Rs 10,000 monthly SIPs to Rs 28.18 lakh. The fund has Rs 6,131 crore in AUM, with a NAV of Rs 46.74. Its portfolio focuses heavily on top companies like RIL, HDFC Bank, and Infosys.

6. SBI Pension Fund - Scheme E - TIER I
The SBI Pension Fund rounds out the list with a 16.07% annualised return, increasing Rs 10,000 SIPs to Rs 27.53 lakh over 10 years. It holds Rs 19,603 crore in AUM, investing heavily in equities. Major holdings include RIL, L&T, and ICICI Bank.

In the last decade, Tier I NPS mutual funds have provided outstanding returns, with all six funds benefiting from Nifty 50’s performance. The top performer, UTI Retirement Solutions, stands out with a 17.81% annualised return, while even the lowest performer, SBI Pension Fund, achieved 16.07%. A Rs 10,000 SIP in these funds has shown remarkable growth, making them excellent options for long-term retirement planning.