It has been over two years since active fund management was allowed in the National Pension System (NPS) for the private sector. With active fund management, returns of funds have begun to diverge from one another. Over the past one year, returns of tier-1 equity funds are in the range of 13.11-16.93 per cent. In the case of government bond funds, returns are in the range of 4.52-7.17 per cent. In the case of corporate debt funds, the variation in returns is lower: 7.14-7.86 per cent.
Earlier, when these funds were managed passively, it did not matter which fund manager