How We Rate NPS Schemes
The Ncash Score helps you compare NPS pension funds at a glance. Here's how it works and what goes into the rating.
What is the Ncash Score?
The Ncash Score is a rating from 0 to 100 that tells you how well an NPS scheme has performed compared to similar schemes. Instead of looking at dozens of numbers yourself, you get a single score that combines what matters most for your retirement savings.
Every scheme is compared only against its direct peers — schemes in the same asset category (Equity, Corporate Bonds, or Government Securities) and the same tier (Tier I or Tier II). So when you see a score of 78, it means that scheme is doing significantly better than most similar options available to you.
What Goes Into the Score?
We look at four things when rating a scheme. Each one is scored separately and then combined into the total Ncash Score:
| What We Measure | Points | Why It Matters |
|---|---|---|
| Returns | 45 out of 100 | How much your money has grown. We look at growth over 1, 3, 5, 7, and 10 years, giving more importance to long-term performance. |
| Risk | 25 out of 100 | How well the scheme protects your money during market falls. Schemes that limit losses during bad times score higher. |
| Consistency | 25 out of 100 | How steady the performance is. A scheme that grows steadily every year scores better than one that swings wildly, even if average returns are similar. |
| Track Record | 5 out of 100 | How long the scheme has been operating. A longer history gives more confidence that performance is not just a short-term fluke. |
Why this balance? Returns matter most for building your retirement corpus. But risk and consistency together make up half the score — because a scheme that gives great returns one year and loses money the next is not a reliable choice for your pension.
What Do the Grades Mean?
The Ncash Score translates into a simple letter grade so you can quickly tell how a scheme stacks up:
| Grade | Score | What It Means |
|---|---|---|
| A+ | 85 – 100 | Excellent — among the best NPS schemes available. Strong returns with low risk and consistent performance. |
| A | 70 – 84 | Very Good — performs well across the board with only minor areas for improvement. |
| B | 55 – 69 | Good — a solid choice that holds its own against most peers. |
| C | 40 – 54 | Average — does the job but doesn't stand out. You may find better options. |
| D | 25 – 39 | Below Average — falls behind most similar schemes. Worth considering alternatives. |
| F | 0 – 24 | Poor — significantly underperforms peers. Consider switching to a better-rated scheme. |
How Do We Compare Schemes?
We only compare schemes that invest in the same type of assets and belong to the same tier. This ensures the comparison is always fair:
- Same asset category: An Equity scheme is compared with other Equity schemes, a Government Securities scheme with other Government Securities schemes, and so on. Comparing across categories would be like comparing apples to oranges.
- Same tier: Tier I (retirement) and Tier II (flexible) schemes are scored separately, since they serve different purposes and attract different types of investors.
In each peer group, there are typically 10 schemes — one from each pension fund manager. So when you see a scheme ranked #1 or #2, it means it is outperforming most of the 10 pension funds managing money in that category.
Understanding Risk on Factsheets
Each scheme's factsheet shows a few risk indicators. Here's what they tell you in plain terms:
- Volatility: How much the scheme's value moves up and down. Lower volatility means smoother, more predictable growth — especially important if you are close to retirement.
- Sharpe Ratio: Are you being rewarded enough for the risk? A higher number means the scheme gives you better returns for the ups and downs you experience.
- Sortino Ratio: Similar to Sharpe, but focuses only on the bad surprises (losses). A higher number means the scheme avoids big drops while still delivering returns.
- Max Drawdown: The biggest drop the scheme experienced over 3 years. Think of it as the worst-case scenario — the most your investment would have fallen before recovering. Closer to 0% is better.
Where Does Our Data Come From?
All our data comes from official sources. NAV (Net Asset Value) prices are published daily by each pension fund manager and made available through the NPS Trust. We use this data to calculate returns, risk measures, and the Ncash Score.
Scores are refreshed regularly to reflect the latest performance. Every factsheet shows the date when it was last updated, so you always know how current the information is.
Frequently Asked Questions
How often is the Ncash Score updated?
The Ncash Score is updated regularly using the latest daily NAV data published by pension funds. Each factsheet shows the date when scores were last refreshed.
Why are Returns weighted the highest at 45 points?
NPS is a long-term retirement product where the power of compounding matters most. Returns have the largest impact on your final retirement corpus, so they receive the highest weight. That said, risk and consistency together account for 50 points — so a scheme that delivers high returns but is unpredictable will not rank at the top.
Are Tier I and Tier II schemes compared separately?
Yes. A Tier I Equity scheme is only compared against other Tier I Equity schemes — never against Tier II or a different asset class. This ensures every comparison is fair and meaningful.
What if a scheme is relatively new?
Newer schemes with a shorter operating history receive a lower Track Record score. They can still score well on returns, risk, and consistency — but the overall score reflects that they have less proven history.
How is the Ncash Score different from mutual fund ratings?
The Ncash Score is built specifically for NPS. Unlike mutual fund ratings that cover thousands of funds, NPS has a unique structure — a small number of pension fund managers offering schemes across fixed asset categories. Our scoring accounts for this structure and the regulatory framework under PFRDA.
Disclaimer: The Ncash Score is a proprietary rating developed by Ncash (Figital Technologies Pvt Ltd) for informational purposes only. It is not investment advice. Past performance does not guarantee future results. NPS investments are subject to market risks. Please consult a qualified financial advisor before making investment decisions.
