Key Takeaways
- • NPS equity schemes posted a one-year benchmark return of -8.75% as of October 26, 2026, per NPS Trust data cited by Moneycontrol, with individual Tier I equity funds ranging down to -11.30%.
- • Kotak Pension Fund recorded the steepest one-year equity decline at -11.30%, followed by DSP Pension Fund at -10.41% and Axis Pension Fund at -10.06%.
- • Over five years, the NPS equity benchmark returned 7.32%, and Kotak's equity fund returned 7.39%, trailing ICICI's 7.78%.
- • Debt categories stayed positive: government securities benchmark returned 0.28% and corporate bonds 2.59% over one year, while five-year benchmarks were 5.67% for government securities and 5.96% for corporate bonds.
- • Floatr founder Amit HL advised investors to reassess asset allocation against their retirement horizon and risk appetite rather than staying invested blindly or exiting in frustration.
Summary
NPS Common Scheme Tier I funds have delivered mixed results across asset classes as of October 26, 2026. According to NPS Trust data cited by Moneycontrol, equity funds recorded one-year losses of up to -11.3%, with the equity benchmark at -8.75% over the period. Over five years, however, the equity benchmark returned 7.32%, a materially stronger record.
Among pension fund managers, Kotak Pension Fund posted the steepest one-year equity decline at -11.30%, followed by DSP Pension Fund at -10.41% and Axis Pension Fund at -10.06%. Kotak's five-year equity return of 7.39% trailed only ICICI Pension Fund's 7.78%. Debt categories were positive over both horizons. Government securities benchmarks returned 0.28% over one year and 5.67% over five years, with Aditya Birla Pension Fund leading at 5.71% over five years. Corporate bonds returned 2.59% over one year and 5.96% over five years, with SBI and UTI leading the one-year figures at 3.10% and 3.06%, and HDFC Pension Fund posting the highest five-year return at 6.39%.
Portfolio-level results were also negative over one year. The aggressive allocation (75% equity, 15% corporate bonds, 10% government securities) returned -3.17% over one year and 6.95% over five years. The balanced allocation (50/25/25) returned -3.66% over one year and an annualised 6.57% over five years, while the conservative allocation (35/35/30) returned 2.19% over one year, according to the article's benchmark data. The article's reported five-year return for the conservative portfolio was 6.33%.
Amit HL, Founder of Floatr, said investors who began contributing over the past three years may find the recent experience disappointing, but that "a short or unfavourable market cycle should not be confused with the long-term potential of retirement investing." He suggested younger investors benefit from disciplined contributions through market cycles, while those nearing retirement should focus more closely on downside risk. The article's disclaimer notes that expert views are their own and that investors should consult certified experts before making decisions.
Among pension fund managers, Kotak Pension Fund posted the steepest one-year equity decline at -11.30%, followed by DSP Pension Fund at -10.41% and Axis Pension Fund at -10.06%. Kotak's five-year equity return of 7.39% trailed only ICICI Pension Fund's 7.78%. Debt categories were positive over both horizons. Government securities benchmarks returned 0.28% over one year and 5.67% over five years, with Aditya Birla Pension Fund leading at 5.71% over five years. Corporate bonds returned 2.59% over one year and 5.96% over five years, with SBI and UTI leading the one-year figures at 3.10% and 3.06%, and HDFC Pension Fund posting the highest five-year return at 6.39%.
Portfolio-level results were also negative over one year. The aggressive allocation (75% equity, 15% corporate bonds, 10% government securities) returned -3.17% over one year and 6.95% over five years. The balanced allocation (50/25/25) returned -3.66% over one year and an annualised 6.57% over five years, while the conservative allocation (35/35/30) returned 2.19% over one year, according to the article's benchmark data. The article's reported five-year return for the conservative portfolio was 6.33%.
Amit HL, Founder of Floatr, said investors who began contributing over the past three years may find the recent experience disappointing, but that "a short or unfavourable market cycle should not be confused with the long-term potential of retirement investing." He suggested younger investors benefit from disciplined contributions through market cycles, while those nearing retirement should focus more closely on downside risk. The article's disclaimer notes that expert views are their own and that investors should consult certified experts before making decisions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.