Planning for retirement is one of the most essential parts of financial planning, and for the same people do look for some best investment plans, where they can accumulate a good corpus, to cover up their expenses after retirement. There are several investments plans available for retirement in the market like Fixed Deposits, National Pension Scheme (NPS), Senior Citizen Saving Scheme, Mutual funds and many more, amidst these many options available it’s natural to get confused as you don’t want to make any mistake with your retirement plan, and thus it calls for the need of financial advisor. Via this blog, we would like to introduce you to invest for retirement via mutual funds.
Well, the long-term nature of retirement planning makes mutual funds a good fit for meeting retirement income goals, but we know that mutual funds have a variety of different schemes, so it becomes a bit difficult to decide which fund will be best suitable for retirement planning, but you need not bother and find funds for your retirement planning, as we are here with the Top Recommended Mutual Fund Schemes of 2020, that is best suitable for your retirement planning.
Why Choose Mutual Fund Investment for Retirement Planning?
Mutual Fund Investment is considered the best option for long-term investments, and by nature, retirement planning is a kind of long-term investment, which is the prominent reason, why the mutual fund is best suggested for retirement planning. Some other reasons are:
- Unlike other insurance plans or Fixed Deposits, the retirement mutual funds do not demand filling premiums on time, however when you opt SIP investment plan, a fixed amount is deducted from your account monthly, you only need to maintain that much sum in your account before the date of deduction.
- Mutual funds do not build any kind of restrictions on withdrawals of money from the fund. The person can withdraw money, partially or completely, without any exit load restrictions, while in other insurance plans or fixed deposits, a kind of penalty is charged for premature withdrawals.
- The Retirement income from mutual funds is tax-efficient, as some schemes of mutual funds, do provide the tax-saving option on returns.
- The investor is free to select his choice mutual funds to invest for retirement planning after analyzing the details regarding the retirement plan, its fund manager, AMC, strategies, past returns, the risk associated, etc., in mutual funds, details regarding fund schemes are easily available on internet or one can ask for the same to financial planners.
Which Mutual Fund Is Best Suitable for Retirement Planning?
Financial advisors say that for retirement planning one should not opt to invest in sector or thematic funds as they are associated with high volatile risk, large-cap funds would also not fit for retirement planning as it has limited growth, so basically people who plan for their retirement, by investing in mutual funds, should take a mix of multi-cap and hybrid funds that are free to move across companies and asset classes, to maximize your gains in the long term.
Top Mutual Funds to Plan for Your Retirement in 2020.
We have prepared a list of best-recommended Mutual funds, best suitable for retirement planning, for the financial year 2020, after a good analysis of different mutual funds. These funds have been selected based on their past returns and performance. These funds are best suitable for investors who can take moderate risks and are willing to invest for at least 5-10 years more.
As of now, you are aware with the top-performing mutual funds in 2020 that is best suitable for your retirement planning, so don’t wait, plan your investment today, in any of these funds, and secure money for expenses after retirement, this strategy would help you and your spouse, live a tension-free life after retirement.
Most importantly, always consult a financial planner or advisor, before starting your investments. They will help you select the best fund, for your investments as per your requirement.
You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).