A new NPS tool launched to help subscribers compare pension fund performance

The Pension Fund Regulatory and Development Authority (PFRDA) has launched a new digital tool called NPS PRIDE-DISHA to help National Pension System (NPS) subscribers compare the historical performance of pension funds before selecting or switching their fund manager.

The regulator said the tool is designed to make pension fund comparisons more transparent and subscriber-centric by showing returns based on actual contribution patterns rather than conventional point-to-point returns.

What is NPS PRIDE-DISHA?

NPS PRIDE-DISHA, short for Pension Fund Returns for Informed Decision & Empowerment, is an online comparison tool that uses nearly 5,000 days of historical Net Asset Value (NAV) data of NPS pension funds dating back to 2008.

Unlike traditional return comparisons that show performance between two dates, the tool uses the Extended Internal Rate of Return (XIRR) methodology to estimate how an investor making regular contributions over time would have fared under different pension funds and investment choices. It does not provide future return projections or forecasts.

Why has PFRDA introduced it?

According to PFRDA, most NPS subscribers contribute periodically over several years rather than investing a lump sum. As a result, point-to-point returns may not accurately reflect their actual investment experience.

The regulator said the new tool allows subscribers to compare pension funds based on contribution patterns that are closer to how NPS investments are made in practice. It also enables comparisons across different asset allocations instead of individual schemes alone.

What can subscribers do with the tool?

Subscribers can use the tool to:

• Compare the historical performance of different NPS pension funds.
• Evaluate returns based on their age, investment start date and contribution amount.
• Compare Active Choice, Auto Choice and composite investment options.
• Simulate how retirement savings could have accumulated under different pension funds and asset allocations.
• View results through graphical comparisons.

PFRDA said the platform currently offers around 4,800 investment combinations using more than 1.1 lakh historical NAV data points.

Who can use it?

The tool is available to all NPS subscribers through the PFRDA website. The regulator has also directed Central Recordkeeping Agencies (CRAs), Points of Presence (PoPs) and nodal offices to make the tool accessible during pension fund selection and switching and to promote its use among subscribers.

More features planned

PFRDA said it plans to expand the platform by adding features such as comparisons for NPS Tier II accounts, NPS Vatsalya, Minimum Assured Scheme Fund (MSF) schemes, and rolling and trailing return analysis in future updates.