How much have your NPS funds earned?

The stock market rally has helped equity funds of the NPS generate good returns, but rising bond yields have pulled down the returns of gilt funds.

Here's a look at how much investors of different risk profiles have earned on their NPS investments.

AGGRESSIVE INVESTORS

Portfolio mix
20% Gilt funds
30% Corporate bond funds
50% Equity funds

Average returns
6 months: 8.31%
1 year: 16.48%
3 year: 9.49%
5 year: 12.61%

Equity rally helped generate double-digit returns

Aggressive investors, who put the maximum 50% in equity funds, have earned rich rewards. The 3-year and 5-year SIP returns are in double digits. Young investors are now allowed to allocate up to 75% of the corpus to equities through the Aggressive Lifecycle Fund (LC-75).

BALANCED INVESTORS
Portfolio mix
33.3% Gilt funds
33.3% Corporate bond funds
33.3% Equity funds

Average returns
6 months: 6.71%
1 year: 11.49%
3 year: 9.74%
5 year: 11.75%

Equity portion boosted returns for balanced investors


Balanced investors, who split their corpus equally across the three asset classes, have also done very well. Their 3-year and 5-year SIP returns are also in double digits. The 5-year annualised return is also very good, which shows that in the long term, a balanced approach can deliver decent returns without taking too much risk.

CONSERVATIVE INVESTORS

Portfolio mix
50% Gilt funds
30% Corporate bond funds
20% Equity fund

Average returns
6 months: 5.36%
1 year: 7.17%
3 year: 9.93%
5 year: 11.04%

Poor returns from debt portion pull down returns


Conservative investors, who put only 20% in equity funds and the rest in debt funds, have earned fairly decent returns. The performance in the past one year has been pulled down by poor returns from the debt portion, but the medium- and longterm picture is quite impressive.

ULTRA SAFE INVESTORS

Portfolio mix
60% Gilt funds
40% Corporate bond funds

Average returns
6 months: 3.52%
1 year: 1.49%
3 year: 10.24%
5 year: 10.04%

Rising bond yields pull down returns of gilt funds


Risk-averse investors who put their entire corpus in gilt and corporate bond funds have not done well. The average G class gilt fund of the NPS generated less than 2% returns in the past one year. Unless bond yields go down, the returns for such investors will remain muted in the coming months.