NPS Scheme E performance: Kotak, ICICI, UTI top 5-year equity returns

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

Top NPS Scheme E Performers (5-year returns)

Based on the 5-year returns for the NPS Scheme E (Equity) Tier I funds, the top-performing fund managers as of the most recent data on the NPS Trust website as of December 15, 2025, show robust performance.

The highest returns were delivered by Kotak Mahindra Pension Fund at 17.11%, followed closely by ICICI Prudential Pension Fund at 16.97%.

UTI Pension Fund and LIC Pension Fund also demonstrated strong returns, achieving 16.78% and 16.49%, respectively.

HDFC Pension Fund rounded out the top five with a 5-year return of 16.11%. Other notable performances include Aditya Birla Sun Life Pension Fund at 15.36% and SBI Pension Funds with a return of 14.28%.

(Source: npstrust.org.in; returns as of 15 December)

What Is NPS Scheme E?

Scheme E under the National Pension System primarily invests in equity markets, making its performance closely linked to stock market movements. While this introduces volatility in the short term, it also offers higher return potential over the long run compared to debt-heavy options.

NPS exit rules 2025: Non-Government subscribers can withdraw up to 80% of retirement corpus

Non-government NPS subscribers whose total retirement savings exceed ₹12 lakh are now required to allocate only 20% of their accumulated corpus toward an annuity, while the remaining up to 80% can be withdrawn as a lump sum at exit.

These changes stem from the PFRDA (Exit and Withdrawal under NPS) Amendment Regulations, 2025, notified on Tuesday, December 16, 2025. The revised framework significantly reshapes retirement payouts for non-government participants.

NPS new investment rules: What’s changed?

Key highlights of the new rules include:

• Pension funds can now invest in gold and silver ETFs, IPOs/FPOs, and stocks from the Nifty 250 universe.

• At least 90% of equity investments must be in the top 200 stocks of the Nifty 250, with 10% flexibility for other eligible stocks.

• Investments are allowed in equity mutual funds, Nifty 50 and Sensex ETFs, REITs, and equity-oriented AIFs (Category I & II).

• Combined exposure to REITs, AIFs, and gold/silver ETFs is capped at 5% of assets under management (AUM).

• Pension funds may participate in IPOs, FPOs, and Offer for Sale (OFS), subject to eligibility and reporting norms.

• Derivatives can be used strictly for hedging purposes, limited to 5% of AUM.

With strong historical returns and greater flexibility under the new investment framework, NPS Scheme E continues to be an attractive option for long-term retirement savers. Choosing a consistently performing pension fund manager can make a significant difference to your retirement corpus over time.