
Planning for retirement is an important financial goal, and the National Pension System (NPS) can be a valuable tool to help you achieve it. Offering a way to build a robust retirement corpus, the NPS is designed to provide both stability and growth, ensuring a regular income post-retirement. Selecting the right fund manager is crucial for getting the most out of your NPS investment, as they play a crucial role in managing your funds to balance risk and return.
Here’s how you can make an informed decision when selecting a fund manager for your NPS scheme.
Key Factors to Keep in Mind When Choosing a Fund Manager:
Choosing the right fund manager can enhance your retirement savings considerably. Here are the essential factors to evaluate:
1. Track Record and Past Performance of PFRDA Appointed Fund Manager UTI Pension Fund
Observe the past performance of PFRDA fund managers over multiple time frames (one-year, three-year, and five-year returns). While past performance doesn’t guarantee future results, it does give insight into how well UTI Pension Fund has navigated market ups and downs. This is especially useful if you’re younger and willing to take on higher equity exposure to maximise returns over the long term. Comparing performance across fund managers can help you spot those who consistently deliver solid returns.
Unveiled: UTI Pension Fund Scheme Returns – E Tier I
* Proven Track Record
Returns as on 6th January, 2025,
1 Year: 18.98%
3 Years:15.50%
5 Years: 17.98%
7 Years: 13.87%
10 Years:13.37%
2. Consistency in Performance
Apart from absolute returns, look for consistency in a fund manager’s performance. A manager who regularly provides solid returns over different market conditions shows a well-rounded, stable approach to investing. Consistency is key, particularly in long-term investments like the NPS, where regular gains compound to grow your corpus over time.
3. Reputation and Credibility
It’s essential to work with fund managers who are backed by reputable and financially stable institutions, as this ensures both reliability and ethical management. Check for any past regulatory issues or controversies related to the fund manager, as a clean record contributes to trustworthiness. Fund managers backed by strong institutions generally have the resources and expertise to make sound investment decisions.
Making the Most of Your NPS with the Right Fund Manager:
Any subscriber with an active NPS account can request online account management through the Protean CRA website. After registering, simply log in with your credentials, select a fund manager, and choose an investment scheme that suits you. Alternatively, you can visit a Point of Presence (PoP) branch to apply for this facility by submitting a written request. You have the flexibility to choose any plan. Please note that this option is available once per year.
Selecting a fund manager like UTI Pension Fund that is aligned with your retirement goals and risk tolerance is essential in maximising the potential of the NPS. This process requires balancing factors like experience, consistency, and compatibility with your investment preferences. Remember, the right manager doesn’t just improve returns—they bring peace of mind, knowing your retirement savings are in capable hands.
The National Pension System is a powerful way to secure your retirement, but its success relies on the expertise of the fund manager you choose. By focusing on the factors above, you can make an informed choice that aligns with your financial goals, ultimately helping you build a substantial retirement corpus and secure a financially stable future.
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