Best Mutual Funds for Senior Citizens

06 September 2022
4 min read

Due to the ease with which they allow investors to diversify across various asset classes without having to manage individual investments, Mutual Funds are among the most popular investment vehicles.

Additionally, Mutual Funds might give investors access to investments they otherwise wouldn't have. Although it's a common misconception that Mutual Funds are too risky and therefore not the best financial tools for senior citizens, there are Mutual Funds specifically tailored as per senior citizens' needs and risk tolerance. 

In this blog, we have composed a list of the best investment for senior citizens via Mutual Fund investment instruments in 2022.

Best Mutual Funds in India for Senior Citizens

 S.No.

Top Mutual Funds for Senior Citizens

1.

ICICI Prudential Balanced Advantage Direct-Growth

2.

Axis BlueChip Fund Direct Plan-Growth

3.

ICICI Prudential Ultra Short-Term Fund Direct-Growth

4.

HDFC Short-Term Debt Fund Direct Plan-Growth

5.

HDFC Retirement Savings Fund Equity Plan Direct-Growth

Factors to Consider Before Investing in Mutual Fund Investment Options for Senior Citizens

Before placing your money in a Mutual Fund, there are a few things you should carefully consider. These factors are-

  • Financial Aims

You must have a financial objective, which is why you had the idea to put money into a nice Mutual Fund for senior citizens. First, select the category of a fund you desire to invest in after quantifying your goal and giving it a time frame according to your needs.

  • Amount of Cash Needed

Going with a money market or liquid funds is preferable if you anticipate needing cash soon. Choose an Equity Mutual Fund if you plan to stay for a while.

  • Risk Horizon

Invest in a more stable Gold Fund or a Debt Fund if you are a risk-averse investor. However, an Equity Fund is a wise choice if you're willing to assume some risk. Hybrid Funds best serve long-term investing at medium risk.

  • Fees for a Fund

When comparing multiple mutual funds, check a fund's entry & exit load, expense ratio, dividend policy, transaction charges, etc. In addition to a fund's historical returns, these variables are also significant.

Performance Overview of the Best Investment Plan for Senior Citizens in the Mutual Fund Category

1) ICICI Prudential Balanced Advantage Direct-Growth

ICICI Prudential Balanced Advantage Direct-Growth is a Hybrid Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

The scheme seeks to provide investors capital appreciation and income distribution by using equity derivatives strategies, arbitrage opportunities and pure equity investments. This is considered one of the best Mutual Funds options.   

2) Axis BlueChip Fund Direct Plan-Growth

Axis BlueChip Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund. This scheme was made available to investors on 04 Sep 2009.

The scheme aims to generate long-term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity-related instruments of large-cap companies.

Axis Blue Chip Fund-Direct (Growth), being an equity fund, is suitable for investors aiming for long-term capital appreciation, ideally with an investment horizon of more than five years. There is no lock-in period in this fund, however. 

3) ICICI Prudential Ultra Short-Term Fund Direct-Growth

ICICI Prudential Ultra Short-Term Fund Direct-Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

The ICICI Prudential Ultra Short-Term Fund Direct-Growth is rated Moderate risk. The minimum SIP Investment is set to ₹1,000. The minimum Lumpsum Investment is ₹5,000. The scheme seeks to generate income through investments in a range of debt and money market instruments. 

4) HDFC Short-Term Debt Fund Direct Plan-Growth

HDFC Short Term Debt Fund Direct Plan-Growth is a Debt Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999. The HDFC Short Term Debt Fund Direct Plan-Growth is rated Moderate risk.

The minimum SIP Investment is set to ₹300. The minimum Lumpsum Investment is ₹5,000. The scheme seeks to generate regular income through investment in debt securities and money market instruments.

5) HDFC Retirement Savings Fund Equity Plan Direct-Growth

HDFC Retirement Savings Fund Equity Plan Direct-Growth is a Solution Oriented Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999.

The HDFC Retirement Savings Fund Equity Plan Direct-Growth is rated Very High risk. The minimum SIP Investment is set to ₹300. The minimum Lumpsum Investment is ₹5,000. The Scheme seeks to provide long-term capital appreciation/income by investing in a mix of equity and debt instruments to help investors meet their retirement goals.

Conclusion

To make investments in equities and debt securities, Mutual Funds pool the funds of many investors who have similar goals. Mutual Funds can be divided into three categories: equity, debt, and hybrid. Seniors can choose the best option by matching their objectives with the fund's goal. 

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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