What are the best mutual fund schemes for Retirement Planning?
Retirement planning is an essential financial planning tool that individuals must take seriously in order to ensure a comfortable retirement. One of the best ways to plan for retirement is to use mutual fund schemes to save and invest for the long-term.
Mutual fund schemes are professionally managed investments that pool together the money of many investors to purchase a variety of different securities, such as stocks, bonds, and other investments, which gives investors diversification. When looking for the best mutual fund schemes for a retirement plan, investors should look for schemes that have a good track record of growth and stability, have low costs, have a variety of investments to choose from, and have a good risk/reward ratio.
One option for retirement plans is index funds, which track a certain index such as the Nifty 50. Index funds do not require the same active management that other mutual fund schemes need, meaning that these mutual fund schemes typically have lower costs and fees. Additionally, because these funds are tied to existing indices, there is limited risk in an index fund, as any steep decline in the market will be reflected in the index fund’s returns.
Below are some recommendations on best mutual fund schemes that tracks the Nifty or Sensex Index:
| Best Index Funds in India: | |||||
|---|---|---|---|---|---|
|
Scheme Name |
AUM |
TER |
1 Year Return % |
3 Years Return % |
5 Years Return % |
|
UTI-Nifty 50 Index Fund (G)
|
7,068.10
|
0.31%
|
6.69%
|
14.75%
|
11.68%
|
|
HDFC Index Fund-Nifty 50 Plan
|
5,940.60
|
0.40%
|
6.53%
|
14.48%
|
11.47%
|
|
HDFC Index Fund – S&P BSE SENSEX Plan
|
3,390.39
|
0.40%
|
6.95%
|
14.40%
|
12.19%
|
**Note- Past performance may or may not be sustained in future. Please read the scheme related documents or consult your financial expert before investing.
Another option is solution oriented funds, which are funds designed specifically for retirement and hold a variety of different investments. These mutual fund schemes are designed to shift to more conservative investments as the fund’s date gets closer, meaning that the investor is less exposed to risk over time. Solution oriented funds also allow investors to pick their retirement date, so they can use funds that are tailored to how long they have until retirement.
Below are some recommendations on best mutual fund schemes that offers solution to your Retirement planning goal:
| Best Solution Oriented Funds in India: | |||||
|---|---|---|---|---|---|
|
Scheme Name |
AUM |
TER |
1 Year Return % |
3 Years Return % |
5 Years Return % |
|
Tata Retirement Savings Fund – Moderate (G)
|
1,480.81
|
2.13%
|
-0.10%
|
11.80%
|
8.17%
|
|
HDFC Retirement Savings Fund – Equity (G)
|
2,087.87
|
2.24%
|
5.45%
|
20.61%
|
12.40%
|
**Note- Past performance may or may not be sustained in future. Please read the scheme related documents or consult your financial expert before investing.
Finally, balanced hybrid mutual funds are another option for retirement plans. Balanced funds are a type of fund that invests in a variety of different investments, such as stocks, bonds, and cash, to create a potentially more stable return for the investor. This can reduce the volatility of returns over time and give the investor more control over their retirement plan.
Below are some recommendations on best mutual fund schemes that follows a balanced hybrid approach:
| Best Balanced Hybrid Funds in India: | |||||
|---|---|---|---|---|---|
|
Scheme Name |
AUM |
TER |
1 Year Return % |
3 Years Return % |
5 Years Return % |
|
HDFC Balanced Advantage Fund (G)
|
43,078.53
|
1.72%
|
12.56%
|
14.35%
|
9.95%
|
|
Nippon India Balanced Advantage Fund (G)
|
6,076.41
|
1.93%
|
2.74%
|
10.26%
|
7.67%
|
|
Aditya Birla SL Balanced Advantage Fund (G)
|
6,671.99
|
1.85%
|
1.54%
|
10.94%
|
7.75%
|
**Note- Past performance may or may not be sustained in future. Please read the scheme related documents or consult your financial expert before investing.
Conclusion:
No matter which type of mutual fund you choose, it is important to invest in funds that have a track record of growth and stability. It is also important to research the fund’s costs and fees to make sure that they are not paying too much for investing in the fund. Finally, it is important to never invest more capital than one can afford to lose, regardless of the types of investments being made. By researching and following these tips, investors can find the best mutual fund schemes for their retirement plans.
