{"id":7903,"date":"2025-07-16T07:36:01","date_gmt":"2025-07-16T07:36:01","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7903"},"modified":"2025-07-16T07:36:02","modified_gmt":"2025-07-16T07:36:02","slug":"nps-returns","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/nps-returns\/","title":{"rendered":"NPS Returns"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nps-returns\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">NPS returns<\/a><\/strong> are the earnings or profits generated from the investments made under the <strong>National Pension System (NPS)<\/strong>. Your money is invested in <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/government-bonds\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">government bonds<\/a>, equities, and corporate debt<\/strong>, and the returns depend on how those investments perform.<\/p>\n\n\n\n<h2 id=\"key-features-of-nps-returns\" class=\"wp-block-heading\">Key Features of NPS Returns<\/h2>\n\n\n\n<h3 id=\"1-market-linked-returns\" class=\"wp-block-heading\">1. <strong>Market-Linked Returns<\/strong><\/h3>\n\n\n\n<p>Unlike traditional pension plans, NPS returns are <strong>not fixed<\/strong>.<br>They depend on how well your chosen investment options perform.<\/p>\n\n\n\n<h3 id=\"2-choice-of-asset-classes\" class=\"wp-block-heading\">2. <strong>Choice of Asset Classes<\/strong><\/h3>\n\n\n\n<p>NPS gives you 4 investment options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Equity<\/a> (E):<\/strong> Up to 75% in <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>stocks<\/a><\/li>\n\n\n\n<li><strong>Corporate <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Bonds<\/a> (C):<\/strong> Debt from companies<\/li>\n\n\n\n<li><strong>Government Bonds (G):<\/strong> Safe, low-return govt securities<\/li>\n\n\n\n<li><strong>Alternative <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/assets\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Assets<\/a> (A):<\/strong> Real estate, etc. (for advanced investors)<\/li>\n<\/ul>\n\n\n\n<p>You can <strong>choose allocation manually<\/strong> or use <strong>Auto Choice<\/strong> (age-based)<\/p>\n\n\n\n<h3 id=\"3-multiple-fund-managers\" class=\"wp-block-heading\">3. <strong>Multiple Fund Managers<\/strong><\/h3>\n\n\n\n<p>NPS offers 10 fund managers, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>HDFC Pension<\/li>\n\n\n\n<li>SBI Pension<\/li>\n\n\n\n<li>ICICI Prudential<\/li>\n\n\n\n<li>UTI Retirement, etc.<\/li>\n<\/ul>\n\n\n\n<p>You can <strong>compare their returns<\/strong> and switch once a year.<\/p>\n\n\n\n<h3 id=\"4-dual-accounts-tier-i-and-tier-ii\" class=\"wp-block-heading\">4. <strong>Dual Accounts &#x2013; Tier I and Tier II<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tier I (mandatory)<\/strong>: Locked till 60 years (partial withdrawal allowed).<\/li>\n\n\n\n<li><strong>Tier II (optional)<\/strong>: Works like a savings account, withdraw anytime.<\/li>\n<\/ul>\n\n\n\n<p>Both give returns based on asset mix and manager performance.<\/p>\n\n\n\n<h2 id=\"historical-returns-approximate-5-year-average\" class=\"wp-block-heading\">Historical Returns (Approximate 5-Year Average)<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Asset Class<\/th><th>Average Return Range<\/th><\/tr><\/thead><tbody><tr><td>Equity (E)<\/td><td>9% &#x2013; 12%<\/td><\/tr><tr><td>Corporate (C)<\/td><td>8% &#x2013; 10%<\/td><\/tr><tr><td>G-Sec (G)<\/td><td>7% &#x2013; 9%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>These returns <strong>beat traditional options<\/strong> like PPF or FDs in the long run.<\/p>\n\n\n\n<h3 id=\"example-of-nps-returns\" class=\"wp-block-heading\">Example of NPS Returns<\/h3>\n\n\n\n<p>You invest &#x20B9;5,000\/month = &#x20B9;60,000\/year<br>After 30 years, at <strong>10% average return<\/strong>, your corpus = <strong>&#x20B9;1.1+ crore<\/strong><\/p>\n\n\n\n<p>Out of this:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>60% is <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>-free <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/lump-sum\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">lump sum<\/a><\/li>\n\n\n\n<li>40% is used to buy pension (annuity)<\/li>\n<\/ul>\n\n\n\n<h2 id=\"benefits-of-nps-returns\" class=\"wp-block-heading\">Benefits of NPS Returns<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Benefit<\/th><th>Why It&#x2019;s Good<\/th><\/tr><\/thead><tbody><tr><td>Higher than FDs\/PPF<\/td><td>Market-linked returns over long term<\/td><\/tr><tr><td>Tax advantages<\/td><td>Extra &#x20B9;50,000 under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80ccd1b\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80CCD(1B)<\/a><\/td><\/tr><tr><td>Multiple asset choices<\/td><td>Customize for risk or safety<\/td><\/tr><tr><td>Low charges<\/td><td>Among the lowest fund management fees (~0.01%)<\/td><\/tr><tr><td>Transparent performance<\/td><td>Returns updated daily on NPS portal<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">Benefits of NPS Returns<\/figcaption><\/figure>\n\n\n\n<h2 id=\"how-to-check-nps-returns\" class=\"wp-block-heading\">How to Check NPS Returns<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit <strong><a href=\"https:\/\/www.npstrust.org.in\/return-of-nps-schemes\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.npstrust.org.in\/return-of-nps-schemes<\/a><\/strong><\/li>\n\n\n\n<li>Select your <strong>Tier<\/strong>, <strong>Fund Manager<\/strong>, and <strong>Asset Class<\/strong><\/li>\n\n\n\n<li>See <strong>1-year, 3-year, 5-year, and since inception<\/strong> performance<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>NPS returns are the earnings or profits generated from the investments made under the National Pension System (NPS). Your money is invested in government bonds, equities, and corporate debt, and the returns depend on how those investments perform. Key Features of NPS Returns 1. Market-Linked Returns Unlike traditional pension plans, NPS returns are not fixed.They [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7903","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7903\/revisions"}],"predecessor-version":[{"id":7904,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7903\/revisions\/7904"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}