Have you been thinking of retirement plans? If so, you are at the right place. Retirement planning is essential, and typically very essential to start early and the right way. Why does one need a retirement plan, you may wonder. Well, for the following few reasons:

Why Retirement Plan is important

– No one predicts the future, which means you do not know what you do not know, and you need that finance.

– You need help with your health as you get older.

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– Taxes can take up a part of your retirement if you do not plan them accordingly.

– You get to the big picture, and it helps you make better career and financial decisions.

– It is also a way to enjoy a happy marriage.

– Even early retirement would not be scary.

– You do not have to worry about being a burden to your children.

– You could also be a ‘cool’ grandparent.

– You would not have to give up your legacy of charitable giving.

– You can avoid running out of money after your retirement.

If you work for the Central Government, the government has already taken care of the majority of the financial elements of your retirement. However, retirement planning is critical for those of you who work in the private sector or are self-employed. One of the few investment options that can outperform inflation is a mutual fund.

Mutual funds must be the focal point of your retirement strategy. In layman’s terms, a mutual fund collects money from multiple participants and then invests it in a variety of equities stocks, debt, and money market securities. Mutual funds provide good long-term returns and can help you create a corpus for your post-retirement requirements. But the question here is which mutual fund is best for retirement for you.

  1. ICICI Prudential Balanced Advantage: If you have a longer time horizon, this mutual fund is an excellent option. This plan has a CRISIL 2 star rating and has achieved a greater return than its benchmark of 41 percent during a one-year period. Some of the fund’s holdings include ICICI Bank, RIL, Infosys, HDFC twins, Bharti Airtel, and Motherson Sumi, among others.
  1. HDFC Retirement Savings Fund: You can begin investing in the plan with a monthly SIP of Rs. 10000 to generate a steady return. A lump sum investment of Rs. 10000 has now been valued at Rs 17971, representing an extraordinary yield of 80% over the previous year. Over a longer period of time, the mutual fund had an annualized return in the range of 12-19%. (This is in the case of lump-sum investment into the mutual fund category). Interestingly, and generally, these retirement plans are for investors who are not disciplined in their investment and are unable to retain their clients. These MFs have a lock-in period of either five years or till retirement.
  1. Parag Parikh Flexi Cap Fund: This mutual fund category has grown in popularity as a result of the growth of these Flexi cap plans. Returning to the possibility of this fund reaching your retirement goals, it has underperformed its benchmark over the previous year, returning 68 percent. The fund is engaged in foreign stock, such as Alphabet Inc-Class C shares, Microsoft Corp, Facebook, and, among others. Its other holdings include ITC and Bajaj Holdings & Investments.
  1. SBI Small Cap Fund: This is a hazardous investment that is best suited to investors with a longer time horizon and a high-risk tolerance. As a very aggressive fund, the fund managed to earn a high return of more than 1% in the previous year, when stock markets were performing well. Among the fund’s assets are JK Cement, Elgi Equipment, Carborundum, and Sheela Foam. The fund is classified as having a relatively high risk.

Choosing the best mutual funds for retirement planning is essential, and these are just a few of the many mutual funds you can choose to invest in for your retirement plan. There are plenty more retirement mutual funds in India that you can actually choose from.

What are the Benefits of Investing in a Mutual Fund for Retirement?

It is Extremely Flexible – Mutual funds are more adaptable than traditional pension plans. There are no limits on making any partial or whole withdrawal at any moment. If you wish, you may withdraw your investment and switch to another mutual fund at any time.

It is Transparent – Mutual funds are more transparent than pension plans since you can quickly get all of the information you need about a mutual fund. To be able to maintain your lifestyle after retirement, you must have a steady source of income. Mutual funds allow you to easily plan for a secure future while minimizing the risks involved.

You Can Avail Tax Benefits – When compared to pension plans, mutual funds are more tax-efficient. There is no exemption to the rule that pension income is taxed in the same way as other income. Long-term capital gains in equities mutual funds are tax-free up to Rs 1 lakh, but in debt funds, it is paid after indexation, which most of the time reduces the tax to nil.


With mutual funds, you can just directly invest with a mutual fund house with a direct plan. You just have to visit a fund house and give your relevant information. With the benefits of SIP and other major benefits, it is one of the best choices for a retirement saving plan.


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