Pension funds come of age, give more returns than PF: The Economic Times
NEW DELHI: They reached late, but NPS ( National Pension System) investors have finally joined the party in the capital markets. An analysis by ET shows that NPS schemes have generated better returns than the provident fund. The average NPS fund for Central government workers has given 10.35% returns since launch, while the average state government scheme has delivered 10.84%.
The NPS schemes for the general public have also done very well, thanks to the bullishness in the equity markets and the recent rally in bonds. The average equity fund has generated 14.6%, while the corporate bond fund has given 10.6%. Gilt funds have given average returns of 9.9%. These calculations are based on SIP returns on monthly contributions from inception till December 2014.
The high returns should be music to the ears of the estimated 36 lakh government employees (14 lakh central government and 22 lakh state government) who have nearly Rs 53,500 crore invested in NPS. Three pension funds manage this gigantic corpus, which is almost 92% of the assets under management (AUM) of the NPS.
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