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What are the best mutual funds for retirement planning?

I am 30 years old. I have two questions: When should I start investing in mutual funds for retirement planning? What are the best mutual funds for retirement planning?

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3 Approved Answers

Tanya

There is no right answer to when to begin planning for retirement. You should start as early as you can, ideally from the time you start earning. This is because the sooner you start, the more money there is to invest and grow. Each year’s gains can generate their own gains the next year and build more wealth. 

Some of the best mutual funds for retirement planning are:

  • Mirae Asset India Opportunities Fund
  • L&T Midcap Fund
  • HDFC Balanced Fund
  • Kotak Select Focus Fund
  • Aditya Birla Sun Life Equity Fund

aniket

Mutual funds help you in planning your retirement by smartly investing your money today so that you can manage your finance needs in the future. It is never too late to start saving for your retirement. At Groww, we have various funds that will help you with your retirement goals like Tata Retirement Savings Fund - Progressive Plan - Regular and Best Retirement Portfolio. The objective of these Funds is to provide a financial planning tool for long term financial security for investors based on their retirement planning goals.

Tata Retirement Savings Fund - Progressive Plan - Regular is an all equity fund with funds allocated mainly to large cap and mid cap companies. The returns have accordingly been towards the higher end, with annualized five year returns averaging 19.18% as against 14.23% generated by Nifty 500. Long term returns generated upon investment in this scheme are exempt from capital gains. Since you are at present 30 years of age, it is my assumption that you can save a relatively higher amount each month for your retirement. Accordingly, an investment of ₹10,000 each month will create a corpus of ₹9,53,500 by the end of five years at historic rates of return. An investment in this fund for a long term (10+ years) should enable you to meet your retirement goals comfortably.

Below is a list of how alternative comparable funds have performed:

Best Retirement Portfolio is a portfolio that is suitable to investors who want to save for their retirement and are comfortable with taking risk in the short run to generate higher returns in the long run. It is an all equity fund, diversified across all sizes of companies. The ideal investment duration is 10+ years. At historic annual rate of return, an investment of ₹10,000 each month will create a corpus of ₹10,89,585 within 5 years.

You can view other funds that will help you plan your retirement here or you can contact Groww for further discussing and designing a plan best suited to you. 

Kavita Soni

While planning your retirement, do not consider it to be risky to invest in mutual funds. These funds are ideal investments as they are low cost, offer tax free (Equity Funds) or tax efficient (Debt Funds) returns, transparency and liquidity.

Instead of going for PPF investment for 15 years, equity funds are cited as better options by financial advisors as 15 years is a long period and hence it accommodates the market risks very well along with the higher returns on equity funds.

The average age at which you should start investing for retirement is 25-30 years as this will provide you a substantial period to realize the higher returns of mutual funds as compared to any fixed deposit schemes.

Now it is very important to know that how much corpus you would require to live a good retirement life. For this, please check out the approximate amount through a verified retirement calculator.

Don’t worry if you are almost near to your retirement, there are still opportunities in mutual funds market to reap better returns for yourself. Please visit below links to know about the ideal portfolios based on your age:

Some of the funds which are considered a best fit for retirement planning include:

  • Tata Retirement Savings Fund - Regular - Conservative Plan 
  • UTI Retirement Benefit Pension Fund (RBP) 

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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