Best Equity NPS Schemes (2026)
Equity NPS schemes (Scheme E) invest primarily in stocks and equity-related instruments, offering the highest growth potential among all NPS asset classes. Here are the top-performing equity schemes ranked by our proprietary Ncash Score.
Top 3 Equity NPS Schemes
Tier I Rankings(10 schemes)
| # | Schemes | 1Y Return | 3Y CAGR | 5Y CAGR | Score | Rating |
|---|---|---|---|---|---|---|
| 1 | Tata Scheme E | +2.18% | +14.28% | +8.24% | 80 | |
| 2 | Kotak Scheme E | +0.18% | +13.34% | +12.51% | 74 | |
| 3 | ICICI Scheme E | +0.38% | +13.69% | +12.42% | 74 | |
| 4 |  UTI Scheme E | -1.54% | +13.22% | +12.13% | 66 | |
| 5 |  HDFC Scheme E | +1.13% | +12.71% | +11.85% | 66 | |
| 6 |  ABSL Scheme E | -0.32% | +12.19% | +11.19% | 54 | |
| 7 |  LIC Scheme E | -0.31% | +11.86% | +11.76% | 54 | |
| 8 |  SBI Scheme E | +0.61% | +10.87% | +10.53% | 43 | |
| 9 |  Axis Scheme E | -3.07% | +11.30% | +5.86% | 41 | |
| 10 |  DSP Scheme E | -7.02% | +4.69% | +2.79% | 35 |
Tier II Rankings(10 schemes)
| # | Schemes | 1Y Return | 3Y CAGR | 5Y CAGR | Score | Rating |
|---|---|---|---|---|---|---|
| 1 | Tata Scheme E | +1.84% | +14.10% | +8.13% | 80 | |
| 2 | Kotak Scheme E | +0.37% | +13.33% | +12.49% | 74 | |
| 3 | ICICI Scheme E | +0.83% | +13.58% | +12.41% | 73 | |
| 4 | HDFC Scheme E | +0.80% | +12.67% | +11.80% | 66 | |
| 5 | ABSL Scheme E | -0.26% | +12.71% | +11.52% | 65 | |
| 6 | UTI Scheme E | -0.97% | +12.34% | +11.50% | 54 | |
| 7 | Axis Scheme E | -2.25% | +12.18% | +6.38% | 52 | |
| 8 | LIC Scheme E | -0.37% | +11.53% | +11.62% | 44 | |
| 9 | SBI Scheme E | -1.76% | +10.74% | +10.49% | 42 | |
| 10 | DSP Scheme E | -8.10% | +3.61% | +2.15% | 33 |
What is NPS Scheme E (Equity)?
NPS Scheme E is the equity asset class under the National Pension System. It invests predominantly in stocks listed on Indian exchanges, equity ETFs, and equity-linked instruments. This makes it the most aggressive NPS option, suited for investors seeking long-term capital appreciation.
Historically, equity NPS schemes have delivered the highest returns among all NPS asset classes over 5+ year horizons. However, they also carry higher short-term volatility compared to corporate bonds (Scheme C) or government securities (Scheme G).
PFRDA regulations cap equity exposure at 75% for active choice subscribers up to age 50, after which it tapers down. Tier I contributions qualify for tax benefits under Section 80CCD(1B) up to Rs 50,000.
Frequently Asked Questions
What is the best Equity NPS scheme in 2026?
Based on the Ncash Score methodology, Tata Scheme E Tier I is the top-ranked equity NPS scheme in 2026 with a score of 80/100. The Ncash Score evaluates returns (45%), risk metrics (25%), consistency (25%), and track record (5%).
What does NPS Scheme E invest in?
NPS Scheme E (Equity) invests in stocks, equity ETFs, and equity-linked instruments listed on Indian exchanges. All investments are managed by PFRDA-registered Pension Fund Managers (PFMs) following strict regulatory guidelines.
How many Equity NPS schemes are there?
There are currently 10 Tier I and 10 Tier II equity 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 Equity NPS schemes?
Equity NPS schemes are best suited for long-term investors (7+ years) comfortable with short-term market volatility who want to maximise retirement corpus growth. 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.
