Best Corporate Bond NPS Schemes (2026)
Corporate bond NPS schemes (Scheme C) invest in high-quality corporate debt instruments, offering a balance between returns and stability. Here are the top-performing corporate bond schemes ranked by Ncash Score.
Top 3 Corporate Bonds NPS Schemes
Tier I Rankings(10 schemes)
| # | Schemes | 1Y Return | 3Y CAGR | 5Y CAGR | Score | Rating |
|---|---|---|---|---|---|---|
| 1 | HDFC Scheme C | +3.15% | +7.29% | +6.52% | 93 | |
| 2 | ICICI Scheme C | +3.20% | +7.16% | +6.32% | 86 | |
| 3 | Kotak Scheme C | +3.29% | +7.15% | +6.27% | 86 | |
| 4 |  SBI Scheme C | +3.11% | +7.11% | +6.30% | 78 | |
| 5 |  UTI Scheme C | +3.43% | +7.07% | +6.21% | 78 | |
| 6 |  DSP Scheme C | +3.21% | +5.70% | +3.38% | 55 | |
| 7 |  Tata Scheme C | +2.79% | +6.91% | +5.10% | 46 | |
| 8 |  Axis Scheme C | +2.77% | +6.88% | +5.09% | 41 | |
| 9 |  ABSL Scheme C | +2.64% | +6.87% | +6.25% | 32 | |
| 10 |  LIC Scheme C | +2.89% | +6.69% | +6.04% | 9 |
Tier II Rankings(10 schemes)
| # | Schemes | 1Y Return | 3Y CAGR | 5Y CAGR | Score | Rating |
|---|---|---|---|---|---|---|
| 1 | HDFC Scheme C | +3.21% | +7.19% | +6.37% | 93 | |
| 2 | ICICI Scheme C | +3.20% | +7.11% | +6.28% | 86 | |
| 3 | SBI Scheme C | +2.95% | +6.98% | +6.03% | 74 | |
| 4 | Kotak Scheme C | +3.12% | +6.91% | +6.03% | 57 | |
| 5 | DSP Scheme C | +2.95% | +6.27% | +3.71% | 55 | |
| 6 | UTI Scheme C | +3.27% | +6.86% | +6.10% | 51 | |
| 7 | Tata Scheme C | +2.27% | +6.78% | +5.16% | 31 | |
| 8 | Axis Scheme C | +2.91% | +6.73% | +4.75% | 19 | |
| 9 | ABSL Scheme C | +2.13% | +6.68% | +6.19% | 12 | |
| 10 | LIC Scheme C | +3.12% | +6.73% | +6.04% | 10 |
What is NPS Scheme C (Corporate Bonds)?
NPS Scheme C is the corporate debt asset class under the National Pension System. It invests in bonds and debentures issued by public sector undertakings (PSUs), private corporations, and financial institutions with investment-grade credit ratings.
Corporate bond NPS schemes typically deliver moderate returns, higher than government securities but lower than equities. They carry credit risk (risk of issuer default) but benefit from regular coupon income, making them a middle-ground option.
These schemes are suitable for investors who want better returns than government securities while maintaining relatively lower volatility than equity. They work well as part of a diversified NPS allocation strategy.
Frequently Asked Questions
What is the best Corporate Bonds NPS scheme in 2026?
Based on the Ncash Score methodology, HDFC Scheme C Tier I is the top-ranked corporate bonds NPS scheme in 2026 with a score of 93/100. The Ncash Score evaluates returns (45%), risk metrics (25%), consistency (25%), and track record (5%).
What does NPS Scheme C invest in?
NPS Scheme C (Corporate Bonds) invests in bonds and debentures issued by PSUs, banks, and investment-grade private corporations. All investments are managed by PFRDA-registered Pension Fund Managers (PFMs) following strict regulatory guidelines.
How many Corporate Bonds NPS schemes are there?
There are currently 10 Tier I and 10 Tier II corporate bonds NPS schemes across all pension fund managers. Tier I is the mandatory retirement account with lock-in until age 60, while Tier II is a voluntary account with flexible withdrawals.
Who should invest in Corporate Bonds NPS schemes?
Corporate Bonds NPS schemes are best suited for moderate-risk investors seeking steady income with better returns than government securities, ideal for a balanced NPS portfolio. Your choice should depend on your age, risk tolerance, and retirement timeline.
How is the Ncash Score calculated?
The Ncash Score is a proprietary rating out of 100 that evaluates NPS schemes across four dimensions: Returns performance (45 points), Risk-adjusted metrics like Sharpe ratio and max drawdown (25 points), Consistency of returns across periods (25 points), and Track record length (5 points). Higher scores indicate better overall performance.
