Retirement means no office, no work, no tension, only rest! In India, the current retirement age for employees is taken as 60 years (in some places it varies up to 64 years), when people cross their 55, they eagerly wait for their retirement, and it is natural.

At this very age, people do want to get free from the duty of earning. They want to relax their mind and feel that happiness of their life, that they missed while earning for their responsibilities.

One side, people happily wait for their retirement, and on the other side, they are worried about their expenses after retirement. Although the government provides pension to their employees, after retirement for their expenses (private employees receive their FD’s deposited per month during their service in the company), this pension amount is unable to carry the load of increasing inflation.

If you are also worried about your expenses after retirement, then I am here with a solution for you. Through this blog, I am illustrating some funds that are considered best for one’s retirement plan. Read the blog and get to know about the best retirement funds. 

Investment for retirement should be planned in the early ’30s, as the more you stay invested, the more you can earn for your after-retirement goal and objectives.

Here I am listing some of the funds that are considered best retirement funds (funds are selected on the basis of their past performance):

*As on 16^th September 2019

1. Mirae Asset Emerging Bluechip fund

• Fund’s Category: It is an open-ended equity scheme investing in both large-cap and mid-cap stocks.
• Fund’s strategy: This fund invests in large-cap companies, that are in the top 100 companies, as per market capitalization, and in mid-cap companies, that are not a part of the top 100 companies, but comes under the top 250 companies, as per market capitalization. It gives its investors, an opportunity, to be a part of the emerging companies, that will be a part of Bluechip companies tomorrow. The main approach of this fund is to participate in high-quality business with a reasonable price and hold the same for a longer period.
• About the fund: This fund was allotted, a decade before on 9^th July 2010. It offers both plan, regular plan and direct plan, that is investors can invest by themselves or can do it via a fund manager or broker. It does avail SIP investment mode to its investors.
• Fund’s Expense ratio: The regular plan of the fund has an expense ratio of about 1.99% and the direct plan has an expense ratio of about 0.79%.

Mirae Asset Emerging Bluechip has outperformed its benchmark (Nifty Large Midcap 250) over the past 1, 3 and 5 years.

Note: This fund is suitable for investors who are seeking for Long term capital appreciation.

2. Kotak Standard Multicap

• Fund’s Category: It is an open-ended multi-cap, equity fund.
• Fund’s Strategy: This fund invests in all subcategories of equity funds, large-cap, mid-cap, and small-cap. Presently, it has 89.83% investment in Indian stocks of which 64.54% is in large-cap stocks, 16.69% is in mid-cap stocks, 1.79% in small-cap stocks. This fund also has its 0.01% investment in Debt of which, 0.01% in funds invested in very low-risk securities. The fund aims to invest in sectors, that are likely to do well over the medium term.
• About the Fund: This fund was allotted on 11^th September 2009. It offers both plan, regular plan and direct plan, that is investors can invest by themselves or can do it via a fund manager or broker. It does avail SIP investment mode to its investors.
• Fund’s Expense Ratio: The regular plan of the fund has an expense ratio of about 1.72% and the direct plan has an expense ratio of about 0.87%.

Kotak Standard Multicap Fund has delivered 13.26% over the past 5 years and 10.37% over the past 3 years, outperforming its benchmark (Nifty 200) over both time periods.

Note: This fund is suitable for investors who are seeking for Long term capital appreciation.

3. L&T Hybrid Equity Fund

• Fund’s Category: It is an open-ended hybrid scheme investing predominantly in equity and equity-related instruments.
• Fund’s Strategy: This fund invests primarily in equity funds and its subcategories, but partly it does invest in debt funds also. Presently, it has 74.35% investment in Indian stocks of which 50.2% is in large-cap stocks, 12.61% is in mid-cap stocks, 3.83% in small-cap stocks. This fund has its investment of around 22.95% in a Debt fund, of which 5.19% in Government securities, 17.76% in funds invested in very low-risk securities. The fund aims to generate long-term capital gain from a diversified portfolio, predominantly equity funds, and also approaches to generate reasonable returns through a portfolio in debt funds.
• About the fund: This fund was allotted on 7^th February 2011. It offers both plan, regular plan and direct plan, that is investors can invest by themselves or can do it via a fund manager or broker. It does avail SIP investment mode to its investors.
• Fund’s Expense Ratio: The regular plan of the fund has an expense ratio of about 1.68% and the direct plan has an expense ratio of about 0.76%.

L&T Hybrid Equity (erstwhile L&T Prudence Fund) is a star of the hybrid fund's category. Its 5-year returns of 10.10% are highly impressive for a hybrid fund.

4. ICICI Balanced Advantage Fund

• Fund’s Category: It is an open-ended, equity-oriented scheme, investing in both equity and debt funds.
• Fund’s Strategy: This fund invests in both equity and debt funds. Presently, it has 68.32% investment in Indian stocks of which 54.8% is in large-cap stocks, 6.96% is in mid-cap stocks, 2.57% in small-cap stocks. This fund has its investment of around 24.67%, in Debt Fund of which 0.74% in Government securities, 23.01% in funds invested in very low-risk securities. This fund aims to provide an opportunity for reasonable returns with relatively lower volatility. The fund approaches an in-house valuation method, to limit the downside risk during the fall of the market and aims to capture the growth opportunities when the market rise.
• About the Fund: This fund was allotted on 30^th December 2006. It offers both plan, regular plan and direct plan, that is investors can invest by themselves or can do it via a fund manager or broker. It does avail SIP investment mode to its investors.
• Fund’s Expense Ratio: The regular plan of the fund has an expense ratio of about 1.7%.

ICICI Balanced Advantage Fund is one of the oldest and most successful funds in this category. It has delivered 10.31% annualized returns over the past 5 years.

Note: Investors who wish to participate in equity markets with a relatively conservative approach can invest in this scheme. 

Fund’s investment returns and Net Asset Value, changes with the market change. If you want to know accurately, about the fund’s returns and NAV, I recommend you meet a financial advisor or planner.

You can also, visit us at Shri Ashutosh Securities Pvt. Ltd., Our professional advisors, are here to help you in every way possible. 

As of now, you got to know about the best retirement funds, don’t waste your time, meet a financial planner today, get your investment for retirement planned, start it, and secure your life after retirement.

Happy Investing!

(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).