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NPS PRIDE-Disha: New Tool Uses XIRR for Pension Fund Comparison
PFRDA's tool uses historical NAV data from 2008 across 4,800 investment combinations. It helps subscribers select funds based on regular contributions, not point-to-point returns.
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The Pension Fund Regulatory and Development Authority (PFRDA) launched a digital tool called NPS PRIDE-Disha. It lets National Pension System (NPS) subscribers compare pension fund performance using the extended internal rate of return (XIRR) methodology. That method estimates returns based on periodic contributions, matching the way most subscribers invest through monthly deposits.
Until now, subscribers compared funds using point-to-point returns over one, three, five or 10 years. PFRDA said those returns offer a snapshot and may not reflect the experience of someone who invests regularly over many years. The new tool instead applies XIRR to historical NAV data, providing a more accurate picture of how a retirement corpus would have grown under different fund choices.
PFRDA built the platform using scheme-wise NAV data dating back to 2008. That covers nearly 5,000 days of daily NAVs across pension funds. The regulator said the tool currently offers about 4,800 investment combinations, drawing on more than 1.10 lakh NAV data points.