Investors in debt funds of the NPS are on cloud nine, while debt mutual funds may be facing a storm. As bond yields head southwards, gilt and corporate debt funds of the NPS are churning out spectacular returns. The best performing Tier I government bond fund of the LIC Pension Fund has risen 20% in the past one year. This stellar performance follows an extended phase of low returns in the preceding two years. In 18 months from January 2017 and June 2018, the average annualised return from the NPS gilt funds was less than 2% and from corporate debt funds was about 4%. Bond yields had risen by almost 150 basis points during this period.