The decision by the Pension Fund Regulatory and Development Authority (PFRDA) to give fund managers a free hand has started showing results. For example, the Tier-1 equity plans from Kotak Pension Fund has generated a return of 14.45 per cent during the last one year, compared with the Nifty50's return of 10.97 per cent, an outperformance of 3.48 per cent.
However, some fund managers like ICICI Prudential Pension Fund has also underperformed during this time and could generate a return of only 9.53 per cent. And this diverging performance means the difference between best and worst performing equity fund is a whopping 4.92 per cent (see Table for more details).
