Retirement mutual funds: Why should you opt for these schemes? 3 key reasons explained

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retail investors is to ensure wealth creation for retirement and children’s education. Aside from an array of equity and debt mutual fund schemes, investors can opt for the bespoke policies meant for retirement. There are 27 retirement mutual funds in the broader category of solution-oriented schemes with total asset size of ₹24,489 crore.

Retirement mutual funds have a lock-in period of five years, enabling investors to stay invested for long for an effective retirement planning. The other sub-category of children’s funds has a total of 11 schemes with total asset under management of ₹18,736 crore, shows the AMFI (Association of Mutual Funds in India) data as on Jan 31, 2024. 1.

Long term wealth creation: These schemes are meant for long term wealth creation. In case you have not subscribed to NPS or PPF, then this can help you create substantial corpus to be used in your old age. 2.

Inflation: Regardless of your savings for retirement, high inflation can ruin your financial goals to a great extent. So, it is advisable to accumulate as much investment as you can so that your lifestyle does not suffer because of inadequate retirement funds. 3.

Lock-in: Retirement mutual funds, just as other solution-oriented schemes, have a five-year lock-in period. As a result, these schemes play a key role in helping investors stay invested for long and make the most of their exposure to equity. Some of the most popular retirement mutual funds based on their asset size include HDFC Retirement Savings Fund - Equity Plan, UTI Retirement Fund, Nippon India Retirement Fund - Wealth Creation Scheme, SBI Retirement Benefit Fund - Aggressive Plan, Tata Retirement Savings Moderate and Tata Retirement Savings Progressive.