Pension Funds are responsible to manage your pension corpus and invest your fund contributions as per the investment guidelines issued by the PFRDA. Such guidelines are framed in a manner that provides you with the optimal risk-return combination. The NPS portfolio is well-diversified that consists of Government securities, Corporate Bonds, and Equities. At present, you can choose any one of the following pension funds:
1. HDFC Pension Management Company Ltd
HDFC Pension Management Company Ltd is a wholly-owned subsidiary of HDFC Life Insurance Company Limited. The company started its operations as a licensed Pension Fund Manager (PFM) from 1st August 2013 to manage the pension corpus of individuals who are enrolled under the NPS. It also acts as a Point of Presence (PoP) via its physical and online platforms to provide NPS-related distribution and services to the subscribers. It has become the youngest and fastest-growing pension fund manager in the industry. It is headquartered in Mumbai, Maharashtra. Mr. Sumit Shukla is the Chief Executive Officer of HDFC Pension Management Company Limited.
As a PFM, it is entrusted to monitor the market and economic trends to devise investment strategies that conform to the key risk parameters and PFRDA guidelines. With a long term investment philosophy, the company aims to maximize the likelihood of achieving your goals and objectives. It derives the confidence to give the most fulfilling and rewarding investment experience from its seasoned portfolio managers who have vast experience in pension administration and asset management.
2. ICICI Prudential Pension Fund
ICICI Prudential Pension Funds Management Company is a wholly-owned subsidiary of ICICI Prudential Life Insurance Company Limited. The company commenced its operations in May 2009 as a registered pension fund manager to manage the funds collected under the NPS for Indian citizens other than government employees. It offers both online and offline platforms to open and operate NPS accounts. It is headquartered in Mumbai, Maharashtra. Mr. Sumit Mohindra is the Chief Executive Officer of ICICI Prudential Pension Management Company Limited.
It draws strength and expertise of the parent company that has significant experience in managing long term investments of life and pension funds and employee benefit funds and annuities for many corporates including PSUs. The company has a sound investment framework that focuses on safety, stability, and returns to deliver superior risk-adjusted returns over the long term. It has one of the most experienced fund management team in the private sector.
3. Kotak Mahindra Pension Fund
Kotak Mahindra Pension Fund Ltd. is a joint venture between Kotak Mahindra Asset Management Limited and Kotak Mahindra Bank Ltd. The company started acting as a registered pension fund manager from 30th April 2009 to manage the funds under the NPS. The pension fund is an effort on part of the Kotak group to motivate individuals to save towards their retirement. It is headquartered in Mumbai, Maharashtra. Mr. Sandeep Shrikhande is the Chief Executive Officer of Kotak Mahindra Pension Fund Limited.
The company leverages the extensive experience of its fund managers in Indian financial markets that covers in Equities, Money, and Fixed Income Markets. The Kotak group is one of India's leading financial organizations that offers a wide range of financial services i.e. commercial banking, stockbroking, mutual funds, life insurance, and investment banking. In a way, the group caters to the diverse financial needs of individuals and corporates.
4. LIC Pension Fund Ltd
LIC Pension Fund, under the sponsorship of LIC, is the first pension fund company in India to receive the certificate of commencement. The company started its operations as a certified pension fund manager on 28th January 2008 to manage the pension contributions of the government employees. It acknowledges the responsibility entrusted over it and realizes that the lives that are associated with it are very valuable indeed. It is headquartered in Mumbai, Maharashtra. Ms. Priti Panwar is the Chief Executive Officer of LIC Pension Fund Limited. The company aims to maximize the return on investment of its subscribers with the right mix of investment strategy that spans across different sectors. The steady growth of the company can be attributed to its robust fund management and scientific investing practices.
5. UTI Retirement Solutions Pension Fund
UTI Retirement Solutions Ltd. is a wholly-owned subsidiary of UTI Asset Management Company Ltd. The company began its operations from 31 March 2008 as a licensed pension fund manager to manage Pension Funds of government employees. Later, on 13 March 2009, it became authorized to handle the NPS funds for all citizens, other than the government employees. It envisages being the most preferred Pension Fund Manager. It is headquartered in Mumbai, Maharashtra. Mr. Balram P. Bhagat is the Chief Executive Officer of UTI Retirement Solutions Ltd.
The company aims to be the most innovative and technically sound wealth creator. It is focused on the investor and wants to provide customer satisfaction through a highly motivated staff. Also, it plans to be a socially responsible organization that is known for its best corporate governance. It endeavors to provide advice that is innovative and technically sound and be a structured point of sales for NPS.
6. SBI Pension Fund
SBI Pension Funds Pvt. Ltd. started its business on 14 December 2007 as a union government company. The company manages pension funds across the spectrum for corporates, banks, government employess, and under Atal Pension Yojana. It the most reliable name in the Pension Fund Management domain and the largest pension fund manager (PFM) amongst all the PFRDA-approved PFMs for NPS. Additionally, it has been classified as the ‘Default Pension Fund Manager’ by PFRDA. It is headquartered in Mumbai, Maharashtra. Mr. Narayanan Sadanandan is the Chief Executive Officer of SBI Pension Funds Pvt. Ltd.
The company manages around 60% market share of the asset under management under the private sector. It ensures that all investments are carried out as per the provisions of PFRDA Guidelines/ Directions. It follows an approach of quality and secure investment that delivers maximum profitability for its subscribers. The company holds expertise across asset classes and has an experienced and dedicated team to manage the subscriber’s corpus.
7. Birla Sunlife Pension Management Ltd.
Aditya Birla Sun Life Pension Management Limited (formerly known as Birla Sun Life Pension Management Ltd.) is a wholly-owned subsidiary of Aditya Birla Sun Life Insurance Company Limited (ABSLI). It began its operations as a licensed pension fund manager on 5 May 2017 to manage the pension funds under the NPS. It also acts as a Point of Presence (PoP) through its physical and online platforms to distribute and service NPS-related tasks for the public at large. It is headquartered in Mumbai, Maharashtra. Mr. Sashi Krishnan is the Chief Executive Officer of Birla Sunlife Pension Management Ltd.
The company leverages on the rich experience of its parent group Aditya Birla Capital Limited (ABCL) that has a strong presence in life insurance, asset management, private equity, corporate lending, structured finance, project finance, general insurance broking, wealth management, equity/currency/commodity broking, online personal finance management, housing finance, pension fund management, and health insurance.
However, PFRDA may modify this list by adding or removing new/existing pension fund managers.