NPS Scheme E performance: HDFC Pension Fund leads 10-year equity returns; ICICI, Kotak and others follow

If you are planning to invest in the National Pension System (NPS), one of the most important decisions you will make is choosing the right Pension Fund Manager (PFM).

Your choice can have a meaningful impact on long-term wealth creation, especially under Scheme E, which invests predominantly in equities.

It covers the six pension fund managers with a 10-year track record: HDFC Pension Fund, ICICI Prudential Pension Fund, Kotak Mahindra Pension Fund, LIC Pension Fund, SBI Pension Fund and UTI Retirement Solutions.

Top NPS Scheme E Performers: 10-year returns

Based on the 10-year returns reported on the NPS Trust website as of August 25, 2025, HDFC Pension Fund delivered the highest return among the six pension fund managers at 12.98%.

ICICI Prudential Pension Fund followed with 12.87%, while Kotak Mahindra Pension Fund and UTI Retirement Solutions delivered 12.70% and 12.50%, respectively.

LIC Pension Fund and SBI Pension Fund recorded 10-year returns of 11.65% and 11.61%, respectively.

Despite delivering double-digit annualised returns over the 10-year period, none of the six pension funds outperformed the benchmark return of 13.12%.

It is important to note that NPS does not have a single universal benchmark across all schemes and asset classes. Performance is evaluated against the applicable benchmark for the particular asset class and pension fund. For Scheme E, the benchmark is linked to equity-market indices with a large-cap orientation.

What is NPS Scheme E?

What does the 10-year performance tell investors?

The 10-year data shows relatively narrow differences among the leading pension fund managers. HDFC Pension Fund was the best performer among the six, but its return of 12.98% was only modestly higher than ICICI Prudential's 12.87%.

The gap between the best and worst performers was also relatively limited over such a long period. This suggests that investors should not choose an NPS pension fund manager solely on the basis of a small difference in historical returns.

NPS returns are market-linked and are not guaranteed. Investors should also consider the fund manager's investment approach, consistency of performance, costs and their own risk tolerance and retirement horizon when selecting a PFM.