A Comparative Study of Pension Fund Managers operating Scheme-C (Tier-II) of National Pension System

National Pension System was introduced by the Government of India to provide the sustainable old age pension to organized and unorganized sector workers. It is a defined contributory pension system in which both employees and employer contribute the amount to provide old age pension to employees. There are various models of NPS for example, Central Government Model, State Government Model, All Citizen Model, Corporate Model, NPS-Swavalamban (NPS-Lite) and Atal Pension Yojna. Each model targets a separate group of workers. All Citizen Model of NPS mainly targets the unorganized sector workers including self-employed. Each subscriber having Tier-I account can open Tier-II account as well under NPS. The Corporate Debt Scheme is one of the assets class under All Citizen Model in which a subscriber can invest his contribution upto 100 percent. The present study is undertaken to evaluate the performance of seven Pension Fund Managers operating Corporate Debt (Tier-II) Scheme of NPS. Various statistical and risk-return measures like Standard Deviation, Coefficient of Variation, Beta Coefficient, Jensen's Alpha, Treynor's Index, Sharpe Ratio and Two-way ANOVA etc. were used in the present study. It was found that LIC PF and HDFC PF are not able to beat the benchmark return in ‘since inception’ category and LIC PF has the larger unique risk as compared to others. The performance of ICICI PF is superior to others. The performance of SBI PF, Kotak PF, Reliance PF and UTI RSL is also good. The difference between the returns of various PFMs was statistically insignificant when actual date of inception was taken for analysis whereas it was statistically significant when the common date of inception was taken for analysis.