LIC Pension Fund (LICPF) has emerged as the leading fund manager for the current financial year by receiving 35% NPS funds of central government employees as against 33% by SBI Pension Funds and 32% by UTI Retirement Solutions.
LICPF, which started its operation with allocation of 5% for the year 2008-09, received substantial increase in allocation of 29% in the year 2009-10.
Talking to FE, H Sadhak, chief executive officer, LICPF, said, ?In a debt-oriented fund, size of the fund matters. Larger the size, better the scope for good performance in terms of yield.? However, LICPF, with right mix of investment strategy across the sector, has maximised its return on its investments. LICPF has offered more than 10% return to its subscribers , said Sadhak.
Central government has introduced new pension system since January 2004 and selected three fund managers, namely LIC Pension Fund, SBI Pension Fund and UTI Retirement Solutions to manage government sector NPS funds.
These fund managers started investment operations in April 2008. For 2008-09, allocation was made on the basis of fund management fees quoted by these three fund managers. However, in the subsequent years, allocation by NPS trust was based on fund management performance.