Best Mutual Funds For Retirement – Retirement is an important stage in one’s life. This is when most people quit working and rely on their savings and investments to support their lifestyle. Investing for retirement allows individuals to take advantage of compound interest and accumulate wealth. Mutual funds are one of the investments that can help you achieve your retirement goals. In this article, let’s look at the best mutual funds for retirement and their taxation.
Note: The list of best mutual funds for retirement is from Mutual Fund Screener. It is as of 13 March 2023 and is derived using the following parameters:
Best Mutual Funds For Retirement
It was launched on 25 February 2016 by HDFC Mutual Fund. As on 10 March 2023, HDFC Retirement Savings Fund – Equity Plan has a NAV of Rs. 31.44. It has a 3-year CAGR (compound annual growth rate) of 27.65%. The minimum investment amount is Rs. 100.
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This fund was launched on February 25, 2016 by HDFC Mutual Fund. As on 10 March 2023, HDFC Pension Savings Fund-Hybrid-Uvity Plan has a NAV of Rs. 26.31. It has a 3-yr CAGR of 19.30%. The minimum investment amount is Rs. 100.
Tata Mutual Fund launched this fund on November 1, 2011. As on 10 March 2023, Tata Retirement Savings Fund-Prog Plan has a NAV of Rs. 40.74 it has a 3-yr CAGR of 14.55%. The minimum investment amount is Rs. 5,000.
It was launched by Tata Mutual Fund on 1st November 2011. As on 10 March 2023, Tata Retirement Savings Fund – Medium Plan has a NAV of Rs. 41.77. It has a 3-yr CAGR of 14.19%. The minimum investment amount is Rs. 5,000.
This fund by HDFC Mutual Fund was launched on 25 February 2016. As on 10 March 2023, HDFC Retirement Savings Fund – Hybrid – Debt Plan has NAV of Rs. 17.12. It has a 3-yr CAGR of 8.60%. The minimum investment amount is Rs. 100.
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This fund was launched on March 31, 1997 by Franklin Templeton Mutual Fund. As on 10 March 2023, Franklin India Pension Plan has a NAV of Rs. 163.57. It has a 3-yr CAGR of 8.34%. The minimum investment amount is Rs. 500
It was launched by Nippon India Mutual Fund on 11 February 2015. As on 10 March 2023, Nippon India Pension Fund – Income Generation has a NAV of Rs. 15.96 it has a 3-yr CAGR of 5.95%. The minimum investment amount is Rs. 500
It was launched by Tata Mutual Fund on 1st November 2011. As on 10 March 2023, Tata Pension Savings Fund – Conservative Plan has a NAV of Rs. 24.91. It has a 3-yr CAGR of 7.56%. The minimum investment amount is Rs. 5,000.
It was launched by Nippon India Mutual Fund on 11 February 2015. As on 10 March 2023, Nippon India Pension Fund – Wealth Creation has a NAV of Rs. 17.51. It has a 3-yr CAGR of 18.12%. The minimum investment amount is Rs. 500
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Mutual pension funds fall under a special category, ‘solution-based schemes’. SEBI introduced it to help investors plan their investments systematically. Mutual funds for retirement come with fixed tenure of 5 years or more. This ensures that the investors remain invested for a long time and achieve the investment objective.
Anyone who wants to save funds for a financially secure life after retirement can opt for mutual funds. There is no minimum age qualification; Therefore, it is also suitable for investors in their 20s. Also, mutual funds invest in low-risk investments. Hence investors with medium to low risk appetite can consider it. However, it’s best to understand how mutual funds work in general before making the call.
As per section 80CCC, investment in pension mutual funds is allowed for deduction up to Rs. 1.5 lakh However, the return of these funds is taxable. If the investor chooses the return as an annuity, the tax is applicable as per the individual income slab.
There are many ways to invest, and mutual funds are one of them. Before investing, make sure you are well aware of the scheme and that it matches your investment objectives. Use the mutual fund screener to find the best mutual funds for retirement. You can also check the list of these funds to keep track of their performance. It’s never too late to invest for retirement. Start exploring your options now.
Reasons Why You Should Invest In Mutual Funds
Retirement is considered an important stage in one’s life. This is the time to live a relaxed and financially peaceful life. And to get financial security for your post-retirement phase, you need to consider saving or investing. Mutual funds are one of the investment options for retirement. These are medium to low risk options that can provide good returns. However, you need to understand the workings of mutual funds and choose the right one according to your investment objectives and risk appetite.
SEBI has introduced a special category in mutual funds called ‘solution-based schemes’, which includes children’s funds and pension funds. Funds under a pension scheme have growth funds that can help with retirement goals. Using the mutual fund screener, you can select these categories and sort the funds according to your desired parameter like AUM, 1-yr return, 5-yr CAGR, 3-yr CAGR, etc.
I am a senior content writer. With 5 years of experience in the financial industry and an insatiable curiosity, I bring complex financial topics to life in a way that anyone can understand. My passion for educating others shines through in my engaging writing style. Retirement is a bittersweet moment that marks the beginning of a comfortable life. However, statistics show that not everyone takes retirement seriously.
If you are someone who wants to invest in the right options today for a comfortable retirement tomorrow, this blog is for you.
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We will give you 10 investment options that can help you manage your expenses after retirement. We’ve also included 3 bonus investment options that you can choose from!
The Indian stock market is a long-term investment vehicle with historical returns of 9-16%. Stocks are divided into 3 categories:
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Debt mutual funds invest in money market instruments or debt instruments such as treasury bills, bonds etc. Historical data suggests that debt funds may give better returns than a bank savings account.
Best Mutual Funds For Retirement
The return is from 7-9%. Debt funds also include short-term investment vehicles such as liquid funds, ultra-short-term funds, and overnight funds.
Equity funds invest in stocks to provide long-term capital growth. Equity funds are divided into 4 categories based on the types of stocks they invest in:
Historically, equity funds have been known to return between 8-16%. Let’s see the pros and cons of equity mutual funds at a glance.
Pension funds invest in stocks or debt instruments to generate income through returns after retirement. Pension funds are also known as pension funds.
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The Public Provident Fund (PPF) is a long-term, government-backed savings scheme that also carries a favorable interest rate. PPF also has tax benefits.
The National Pension Scheme is a post-retirement, income-generating option supported by the government. NPS requires an individual to contribute a fixed amount during their working years.
A rental property can generate passive income in the form of rent or lease. However, buying a rental property requires a lot of effort and a large amount of initial investment.
Peer to peer lending (P2P lending) can generate a recurring monthly interest, commonly known as passive income. The interest rate generally depends on the term of the loan and can range from 9-14%.
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While gold cannot generate passive income, the inflation-hedging benefit can be useful for unexpected emergencies or post-retirement expenses. However, this will require you to sell gold.
Senior Citizen Savings Scheme (SCSS) is a post-retirement investment option for Indian citizens above 60 years of age. This is a government backed investment option. There is a 5 year lockup period.
Retirement is not easy. But you can pay off your future self by investing in the right choices today. The assets mentioned above can help you plan your retirement portfolio. Every investment comes with its own risks and benefits. It is therefore recommended that you speak with a trained financial professional before investing.
Passionate about personal finance and all things money. You can find me reading a book or dancing to a song.
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