Evaluating the Risk–Return Efficiency of NPS Equity Funds vs Corporate Bond  and Government Securities Funds

Princy Sneha J; Beulah Vijayarani C

Evaluating the Risk–Return Efficiency of NPS Equity Funds vs Corporate Bond and Government Securities Funds

Author(s)	Ms. Princy Sneha J, Dr. Beulah Vijayarani C
Country	India
Abstract	This paper analyzes the risk-return efficiency of the most popular three asset classes provided by the National Pension System involving Equity funds, Corporate Bond funds and Government Securities funds which are trading under the Tier I structure and are under the care of several pension funds managers registered under the NPS Trust. The analysis is based on the annualised returns as well as net asset values (high and low) of fifty two weeks data of every fund which allows constructing consistent indicators of short-term volatility and long-term performance. The research concentrates on the averages in order to arrive at the aggregate behaviour with dispersion in the outcomes in order to have the variation that the fund managers inject in each asset class. The comparison of the average returns indicates a very clear trend with equity funds performing very well on the multi-year returns and Corporate Bond and Government Securities funds performing more reliably with less volatility and this shows that the assets contribute differently to the total pension portfolio. The efficiency is evaluated by ratio of average returns to short term amplitude so as to focus the attention on the trade-off between growth potential and relative stability. This measure puts the fixed-income funds in the role of producing more consistent results even with lower long-run returns. The implications of the research findings to investors and policy makers explain the relation between risk and return in NPS. The study presents evidence that asset allocation should be selected considering the objective of growth and stability needs so as to potentially support retirement planning that will hold up in dissimilar market conditions.
Keywords	National Pension System, Pension Fund Performance, Risk–Return Efficiency, Equity Funds; Corporate Bond Funds, Government Securities Funds, Pension Fund Managers, Long-Term Returns, Volatility Analysis and Retirement Investment
Field	Mathematics > Economy / Commerce
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-02-09

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Evaluating the Risk–Return Efficiency of NPS Equity Funds vs Corporate Bond and Government Securities Funds

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