What do you expect to do post-retirement? Perform a task for an NGO and contribute to society? Relax and return to your hometown? or spend time with your family? Regardless of your objective for a worry-free and financially secure retirement, you must start planning now with the best mutual funds for retirement planning.
After you retire, you will no longer get a salary or produce a regular income. And you’ll need a financial cushion to cover daily expenses and enjoy your retirement years.
After retirement, although your income is not guaranteed, you do not have to keep working. To preserve your freedom, you must save and invest for the future now. The monthly payouts from these mutual funds are sufficient to maintain the same quality of life as when you were working.
You deserve a worry-free retirement after the number of years you’ve spent working for your successful future. We have enlisted the best mutual fund app for retirement planning.
Remember that these plans are preferable to the most typical retirement savings vehicles that come to mind: National Saving Certificates (NSCs), Employee Provident Funds (EPFs), and Public Provident Funds (PPFs).
Select A Pension Plan
The most critical element determining retirement income is the length of time remaining until retirement. It’s all about your risk appetite. For example, a 35-year-old might invest in a moderately risky monthly-paying fund. Others may be combative. Regardless of risk tolerance, the aim is to beat inflation and build a sizable savings account.
Choose the kind of plan you want. Stock investment may lead to a continuous increase in wealth, but it requires the use of a Demat account and a higher degree of dedication. Through SIP, investing in retirement accounts makes more profits while taking less time.
Consider retiring when you’re 35 years old. You have another 25 years till you can retire. With a 15% annualized return on monthly payments of 5,000 rupees, it is feasible to gain Rs 1.62 crore.
The ability to multiply is an advantage of SIP. It minimizes investors’ concerns about market volatility. You may be able to save sufficient money by making one or more lump-sum payments.
Over time, Lumpsum continually outperforms its competitors. Furthermore, Mutual Fund purchases do not need the usage of a Best Demat Account in India.
In Which Mutual Funds Should One Invest?
- Top Five Funds for Investors Between the Ages of 25 and 40 Planning for Retirement
| Product Name | Category | 1 Year | 3 Year | 5 Year | Fund Value of Rs.10,000 Invested Per Month (5 Years) |
| Aditya Birla Sun Life Small and Midcap Fund – Growth | Equity | 13.97% | 22.94% | 28.01% | Rs.11,72,257 |
| Canara Robeco Emerging Equities – Growth | Equity | 13.24% | 20.25% | 30.21% | Rs.12,33,265 |
| Mirae Asset Emerging Bluechip Fund – Growth | Equity | 12.54% | 21.95% | 30.39% | Rs.12,38,390 |
| HDFC Balanced Fund – Growth | Equity | 11.59% | 12.97% | 19.10% | Rs.9,51,705 |
| Franklin India Prima Plus – Growth | Equity | 10.93% | 11.77% | 18.77% | Rs.9,44,288 |
- Top Five Funds for Retirement Planning for Investors Between the Ages of 41 and 50
| Product Name | Category | 1 Year | 3 Year | 5 Year | Fund Value of Rs.10,000 Invested Per Month (5 Years) |
| SBI Magnum Multi-Cap Fund – Growth | Equity | 15.48% | 15.91% | 20.84% | Rs.9,91,611 |
| Mirae Asset India Equity Fund – Regular – Growth | Equity | 15.23% | 15.64% | 20.57% | Rs.9,85,301 |
| L&T India Prudence Fund – Regular – Growth | Equity | 11.00% | 12.88% | 18.69% | Rs.9,42,499 |
| Kotak Select Focus Fund – Regular – Growth | Equity | 10.46% | 15.40% | 20.60% | Rs.9,85,995 |
| BNP Paribas Mid Cap Fund – Growth | Equity | 6.37% | 14.17% | 23.53% | Rs.10,56,239 |
- The Five Best Funds for Retirement Planning for Investors Aged 51 to 55
| Product Name | Category | 1 Year | 3 Year | 5 Year | Fund Value of Rs.10,000 Invested Per Month (5 Years) |
| Mirae Asset India Equity Fund – Regular – Growth | Equity | 15.23% | 15.64% | 20.57% | Rs.9,85,301 |
| SBI Bluechip Fund – Growth | Equity | 13.65% | 13.17% | 17.98% | Rs.9,26,773 |
| ICICI Prudential Balanced Advantage Fund – Regular – Growth | Equity | 10.24% | 10.45% | 14.22% | Rs.8,47,348 |
| Aditya Birla Sun Life Balanced 95 – Growth | Equity | 9.97% | 12.32% | 16.72% | Rs.8,99,433 |
| Franklin India Balanced Fund – Growth | Equity | 9.79% | 10.07% | 15.88% | Rs.8,81,633 |
- Five of the Best Funds for Retirement Planning for Investors Over 56
| Product Name | Category | 1 Year | 3 Year | 5 Year | Fund Value of Rs.10,000 Invested Per Month (5 Years) |
| Mirae Asset India Equity Fund – Regular – Growth | Equity | 15.23% | 15.64% | 20.57% | Rs.9,85,301 |
| ICICI Prudential Balanced Advantage Fund – Regular – Growth | Equity | 10.24% | 10.45% | 14.22% | Rs.8,47,348 |
| Aditya Birla Sun Life Balanced 95 – Growth | Equity | 9.97% | 12.32% | 16.72% | Rs.8,99,433 |
| Aditya Birla Sun Life Short Term Opportunities Fund – Regular – Growth | Debt | 5.72% | 7.88% | 8.79% | Rs.7,43,528 |
| DSP Blackrock Credit Risk Fund – Regular Plan-Growth | Debt | 5.71% | 8.31% | 8.74% | Rs.7,42,643 |
The Final Word
As the majority of us fail to make suitable retirement plans and end up relying on our children, it is vital that you immediately begin making the required preparations.
On the other hand, mutual funds are a good retirement investment for those willing to accept financial risk. The quicker you begin saving for retirement, the greater your nest egg will be at the time of retirement.