Long-term potential and less risky: These large-cap stocks are favourites of NPS managers
Since the New Pension Scheme- one of the most popular retirement planning investment vehicles- doesn’t face redemption pressure, fund managers usually buy and hold stocks. The schemes’ conservative nature also leads the portfolios to more large-cap stocks
The National Pension System (NPS) is increasingly becoming a popular investment to plan for retirement. NPS fund managers know all too well therefore importance to keep the risk level of the portfolio in check. That is one important reason why a large chunk of NPS portfolios lie in large-cap stocks. Another characteristic of a NPS portfolio is that due to its low withdrawals and long lock-ins, fund managers can take a long term view on the stocks. NPS-Scheme E in the Tier-1 account invests in equities that have the potential to grow in the long run. They follow a 'buy and hold' strategy. Most of the stocks have been present in the portfolio since its inception. Almost 95% of the portfolio of NPS funds has comprised of the bluechip stocks. Here are the top 10 popular stocks among the nine NPS managers (portfolio of newly launched Axis NPS has not yet been available) in the portfolio of Scheme-E under Tier-1 account. Portfolio data as on September 30, 2022 Reliance Industries Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 2,852 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Max Life Pension, SBI Pension and Aditya Birla Sun Life Pension ICICI Bank Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 2,832 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Kotak Pension, ICICI Prudential Pension and UTI Pension HDFC Bank Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 2,340 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Aditya Birla Sun Life Pension, Max Life Pension and LIC Pension Infosys Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 2,172 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: ICICI Prudential Pension, Aditya Birla Sun Life Pension and HDFC Pension Larsen & Toubro Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 1,206 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: LIC Pension, Kotak Pension and ICICI Prudential Pension State Bank Of India Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 1,227 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: ICICI Prudential Pension, UTI Pension and Kotak Pension ITC Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 1,094 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Kotak Pension, Tata Pension and HDFC Pension Bharti Airtel Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 1,075 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Tata Pension, HDFC Pension and UTI Pension Tata Consultancy Services Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 1,027 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Aditya Birla Sun Life Pension, LIC Pension and Max Life Pension Hindustan Unilever Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 923 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Kotak Pension, Tata Pension and Aditya Birla Sun Life Pension Bajaj Finance Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 707 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Kotak Pension, Tata Pension and Max Life Pension Mahindra and Mahindra Number of NPS Tier-1 Scheme- E that held the stock: 9 Current value of the investment: Rs 577 crore Schemes (Scheme-E of Teir-1 account) that held higher allocation to the stock: Tata Pension, Kotak Pension and HDFC Pension. Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.