According to data from the National Pension System Trust as of July 7, 2026, seven of the 10 pension fund managers under Scheme E – Tier I Direct (Non-Government Sector) generated negative one-year returns. The short-term performance has been adversely affected by current market volatility, with the majority of equity-based pension funds posting negative returns over the past year. However, as reported by the source, the picture changes significantly when viewed over a longer horizon.
Tata Pension Management topped the category with a return of 1.55% over the one-year period, followed by ICICI Prudential Pension Fund at 1.53%, while SBI Pension Funds posted 0.69%. HDFC Pension Management delivered a marginal positive return of 0.21%. Among the laggards, DSP Pension Fund recorded the steepest decline with a 7.89% loss over the one-year period, followed by Axis Pension Fund at -3.25%.
Over the past five years, every major pension fund in the same category has produced annualised returns of more than 10%. ICICI Prudential Pension Fund topped the five-year performance chart with an annualised return of 12.72%, followed by Kotak Pension Fund at 12.35% and UTI Retirement Solutions at 12.04%. Even the lowest performer in the category, SBI Pension Funds, generated an annualised return of 10.62% during the five-year period.
The influence of short-term market changes on equity investments is highlighted by the difference between the one-year and five-year returns. As reported by the source, financial experts advise investors to focus on long-term performance rather than responding to transient market fluctuations. Since NPS is designed as a retirement savings vehicle, staying invested through market cycles has historically helped investors benefit from long-term compounding, with the longer-term picture remaining much stronger despite recent volatility.
