NPS in 2026: Are You Picking the Wrong Fund?

Not all NPS funds perform equally. Picking a consistently strong fund manager can make a big difference to your retirement corpus. Here's how to evaluate NPS schemes before your next contribution.

Here's what happened: NPS has multiple fund managers — SBI, HDFC, Kotak, LIC, UTI, Axis — each offering equity, corporate bond, and gilt options.. Performance across NPS fund managers varies significantly; some equity funds have delivered 12–14% returns over 5 years while others lagged behind.. Consistent outperformance — beating the benchmark with lower risk — is the key metric to look for when choosing or switching your NPS fund manager..

What you should do: Log into your NPS account on CRA portal (cra-nsdl.com or KFintech) and check your current fund manager's 3-year and 5-year returns under Tier-1.. Compare your fund's performance against its benchmark index — if it consistently underperforms, you are allowed one free fund manager switch per year.. Increase your NPS contribution up to ₹50,000 under Section 80CCD(1B) to claim an additional tax deduction beyond the standard ₹1.5 lakh 80C limit..

You can split your NPS corpus across two fund managers — many investors don't know this. It reduces concentration risk without any extra fee.