Best Mutual Funds for Senior Citizens

For individuals approaching retirement or for those looking to provide a stable and secure financial future for their parents, it is vital to have certain investments in place. There are numerous options through which senior citizens can earn money, mutual funds being one. In this article, we will look at the best mutual funds that provide returns to senior citizens and also help preserve their capital.

Best Mutual Funds for Senior Citizens in 2025

The best mutual funds for senior citizens invest in a variety of assets that mitigate risks and generate returns on their investment. Here are the best mutual funds for senior citizens based on the 3-year annualised returns and the risk level of the schemes.

The above data is as of February 10, 2025

Overview of Best Mutual Funds for Senior Citizens

JM Equity Hybrid Fund

• 3Y Annualised Returns – 23.03%
• Carries very high risk
• Minimum SIP Amount – Rs 100
• Assets Under Management (AUM) – Rs 762.93 crore
• 74.6% of the funds allocated to equity, 19.4% to debt and 6.1% held as cash
• Expense Ratio – 0.70%
• Inception Date – April 1, 1995

HDFC Balanced Advantage Fund

• 3Y Annualised Returns – 20.35%
• Carries very high risk
• Minimum SIP Amount – Rs 100
• AUM – Rs 95,521 crore
• 53.7% of the funds allocated to equity, 30.1% to debt and 14.8% held as cash
• Expense Ratio – 0.78%
• Inception Date – September 11, 2000

ICICI Prudential Multi-Asset Fund

• 3Y Annualised Returns – 19.25%
•  Carries high risk
•  Minimum SIP Amount – Rs 100
• AUM – Rs 51,027 crore
• 48.2% of the funds allocated to equity, 16.8% to debt and 22% held as cash
• Expense Ratio – 0.70%
• Inception Date – October 31, 2002

Quant Multi Asset Fund

• 3Y Annualised Returns – 19%
• Carries high risk
• Minimum SIP Amount – Rs 1,000
• AUM – Rs 3,201 crore
• 54.2% of the funds allocated to equity, 10.5% to debt and 22% held as cash
• Expense Ratio – 0.74%
• Inception Date – March 21, 2001

ICICI Prudential Retirement Fund Hybrid Aggressive Plan

• 3Y Annualised Returns – 18.59%
• Carries moderately high-risk
• Minimum SIP Amount – Rs 100
• AUM – Rs 747.48 crore
• 84% of the funds allocated to equity, 13% to debt and 2.8% held as cash
• Expense Ratio – 0.94%
• Inception Date – February 27, 2019

Mahindra Manulife Aggressive Hybrid Fund

• 3Y Annualised Returns – 16.48%
• Carries moderately high-risk
• Minimum SIP Amount – Rs 500
• AUM – Rs 1,522.49 crore
• 76.4% of the funds allocated to equity, 21% to debt and 2.6% held as cash
• Expense Ratio – 0.52%
• Inception Date – July 19, 2019

HSBC Equity Savings Fund

• 3Y Annualised Returns – 12.41%
• Carries moderate risk
• Minimum SIP Amount – Rs 500
• AUM – Rs 645.63 crore
• 37.1% of the funds allocated to equity, 23.2% to debt and 39.7% held as cash
• Expense Ratio – 0.61%
• Inception Date – October 18, 2011

Sundaram Equity Savings Fund

• 3Y Annualised Returns – 12.03%
• Carries moderate risk
• Minimum SIP Amount – Rs 100
• AUM – Rs 1,051.39 crore
• 33.7% of the funds allocated to equity, 24% to debt and 42.3% held as cash
• Expense Ratio – 0.75%
• Inception Date – January 2, 2013

Factors to Consider While Investing in a Mutual Fund for Senior Citizens

There are various options in the market when it comes to the best senior citizen mutual funds in India. However, one should keep certain key things in mind while making an investment decision in this space.

Risk

Risk and reward are key considerations when investing in a mutual fund for senior citizens. It is important to strike a balance between lowering the risk and maximising the returns to secure the financial future of senior citizens.

SIP and SWP

Consider investing through a systematic investment plan (SIP) or a systematic withdrawal plan (SWP). Both options offer several benefits to senior citizens. While investing for the future, one can build a corpus through an SIP. An SWP allows senior citizens to periodically withdraw funds providing them with a regular income stream.

Tax Implications

It is important to consider the tax implications of the scheme that one invests in. Depending on the asset allocation, a fund may be treated as an equity or debt fund. Moreover, investing in a scheme that offers tax benefits can be advantageous for the investor.

Costs and Fees

Similar to other investments, it is crucial to be aware of and compare the associated costs and fees with a mutual fund. Costs like the entry load, exit load, and expense ratio can impact the investor’s overall returns.

Benefits of Investing in Mutual Funds for Senior Citizens

Investing in a mutual fund can offer several advantages to senior citizens.

Diversification

A mutual fund for senior citizens strives to strike a balance between risk and returns. As a result, these schemes invest in a variety of assets to spread out risk and provide a diverse portfolio to investors.

Regular Income

Investors can also generate a regular income through certain schemes which pay out dividends and interest. This regular income can help investors pay for their daily needs or build up a savings corpus.

Tax Benefits

Senior citizens investing in mutual funds can receive tax benefits under Section 80C of the Income Tax Act.

Professional Management

Mutual funds are managed by professionally qualified fund managers. This improves the chances of the funds giving good returns to senior citizens.

Conclusion

It is important for everyone to plan for a financially secure retired life. To achieve this, one could invest in the best mutual funds that are aligned with the interests of senior citizens. These funds allow them to diversify their investments, generate income, and manage risk effectively.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.