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Top Mutual Funds for Retirement Planning: A Detailed Review

It can be stressful and worrying to see our parents get older. It is our duty as their children to direct them toward the greatest possibilities for the future, particularly when it comes to retirement planning. Some of the greatest retirement plans for seniors are provided by mutual funds. 

Unfortunately, a lot of individuals put off retirement planning, which leaves them struggling financially as they near their senior years. Knowing the importance of retirement planning is essential, and mutual funds offer a beneficial investment route that provides a range of monetary benefits. Retirement may be safe and comfortable thanks to these funds, which serve people from all walks of life.

Top 5 Mutual Funds for Retirement Planning

Selecting the right mutual fund investing plan is pivotal to ensuring your financial well-being during retirement. Here are the top five mutual funds designed specifically for retirement planning:

  • Kotak Mahindra Bank Mutual Fund – INSTA SIP

This plan, provided by Kotak Mahindra Bank, allows you to invest small amounts of money at regular intervals of time and build your wealth. It is popularly regarded as a top mutual fund for ensuring your retirement. 

  • Kotak Multi Asset Allocator Fund

The Kotak Multi Asset Allocator Fund has shown a promising track record. With a Compounded Annual Growth Rate (CAGR) of 15.29% since its inception in 2004, it has consistently delivered strong returns. The fund’s dynamic allocation strategy, comprising 90% Nifty 50 Hybrid Composite Debt 50:50 Index, 5% Physical Gold, and 5% MSCI World Index, aims to optimise risk-adjusted returns. The recent performance data as of October 4, 2023, reflects a CAGR of 22.84%, outperforming its benchmark. Managed by experienced professionals, this fund offers the potential for long-term capital appreciation, making it a fruitful choice for investors seeking retirement planning.

  • ICICI Prudential Retirement Mutual Fund Hybrid Aggressive Plan -Growth

An additional retirement plan created specifically for older folks is the ICICI Prudential Retirement Mutual Fund Hybrid Aggressive Plan Direct-Growth. This plan, provided by ICICI Mutual Fund, helps participants achieve their financial objectives by investing in stocks (equities) and associated financial assets and generating capital gains.

  • Kotak Emerging Equity Fund

The Kotak Emerging Equity Fund has demonstrated its potential for fruitful investments. With an impressive Compounded Annual Growth Rate (CAGR) of 20.45% since its inception in 2007, it offers substantial returns. This mid-cap-focused fund aims to generate long-term capital appreciation. It invests predominantly in mid-cap companies, known for their growth potential. The recent CAGR of 22.87% as of October 4, 2023, outperforms its benchmark, making it an attractive option for investors seeking future-ready opportunities in equities.

  • TATA Retirement Savings Mutual Fund Progressive Plan Regular Growth

TATA Mutual Funds offers this plan as a strong financial planning tool to help you achieve your retirement goals. You may ensure significant financial rewards for your future by investing in long-term securities. It is worth noting that foreign mutual funds offer the opportunity to participate in securities listed outside of India. Investing in these funds has the potential to provide enormous gains. 

Wrapping Up

Retirement planning is an important part of one’s financial journey, and mutual funds may be a useful tool in reaching one’s retirement objectives. You can also consider investing in International mutual funds to reap fruitful potential returns. When selecting a retirement mutual fund, it is essential to start early even with a lower amount to build a retirement corpus. You must evaluate several criteria, including your risk tolerance, investing horizon, and financial goals.