(The blog mentions mutual funds based on 3-year annualized results.)
For most of us, retirement planning might be intimidating. Mutual funds are one approach to make sure you have a comfortable retirement.
The process of determining the top retirement funds in India for 2024 becomes vital in a world where financial security is imperative. Explore some of the top mutual funds for retirement planning based on three-year results by reading this blog.
List of India’s Top Retirement Funds for 2024 (based on 3-Year Returns)
The top retirement mutual funds for 2024 are shown in the following table, based on 3Y Returns:
An overview of the top mutual funds, according to 3Y Returns, for retirement planning
According to 3Y Returns, the top retirement mutual funds for 2024 are summarized as follows:
1. ICICI Prudential Retirement Fund Direct-Growth Pure Equity Plan
As of March 31, 2024, the fund has AUM of ?649.09 crores and a 0.71% expense ratio.
93.75% of its assets are in equities, comprising 14.78% mid-cap stocks, 12.86% small-cap stocks, and 53.3% large-cap stocks.
Top holdings include Ambuja Cements Limited, Maruti Suzuki India Limited, DLF Limited, Bharti Airtel Limited, Larsen & Toubro Limited, Tech Mahindra Limited, and Ultratech Cement Limited, among others.
For investors who keep their position open for at least five years, this investment fund has typically produced an annual gain of 22.58%. Furthermore, the rewards increase by 20% for every degree of risk accepted.
2. HDFC Retirement Savings Fund Direct-Growth Equity Plan
As of March 31, 2024, the fund has AUM of ?4,830.28 crores and a 0.68% expense ratio.
48.81% of its assets are in large-cap stocks, 9.45% are in mid-cap stocks, and 17.4% are in small-cap stocks. 89.74% of its investments are in equities.
ICICI Bank, HDFC Bank, Axis Bank, Bajaj Auto Limited, Infosys Limited, Bharti Airtel Limited, Larsen & Toubro Limited, State Bank of India, and ITC Limited are among its holdings.
Every risk taken has resulted in 20% higher returns from this investment.
3.ICICI Prudential Retirement Fund Direct-Growth Hybrid Aggressive Plan
As of March 31, 2024, the fund has AUM of ?366.59 crores and a 0.66% cost ratio.
Eighty-two percent of its assets are in equity, comprising forty-seven percent large-cap stocks, twenty-seven percent mid-cap stocks, and twelve-two percent small-cap stocks. It also allots 7.87% to debt, of which 4.79% is made up of government securities.
GOI, Lupin Limited, Interglobe Aviation Limited, Ultratech Cement Limited, Jindal Stainless Limited, Inox Wild Limited, Tech Mahindra Limited, and Bharti Airtel Limited are among its interests.
Investors who have kept this fund open for longer than five years have received an annual return of 17.85%.
4. SBI Retirement Benefit Fund Direct-Growth Aggressive Plan
As of March 31, 2024, the fund has an AUM of ?2,213 crores and an expense ratio of 0.84%.
Its equity holdings make up 93.65% of its total investments; large-cap stocks make up 45.41%, mid-cap stocks comprise 16.33%, and small-cap stocks comprise 14.07%. It also allows 4.09% to debt, of which 3.85% is allocated to government securities and 0.24% to low-risk securities.
Its holdings include TVS Motor Company Limited, Kajaria Ceramics Limited, Hindalco Industries Limited, Timken India Limited, Abbott India Limited, Reliance Industries Limited, Maruti Suzuki India Limited, and others.
5.Nippon India Retirement Fund Direct-Growth Wealth Creation Scheme
As of March 31, 2024, the fund has an AUM of ?3,003.63 crores and a 0.96% cost ratio.
It invests 97.32% of its assets in equities, with 53.92% allocated to large-cap stocks, 9.59% to mid-cap stocks, and 8.11% to small-cap stocks.
Its holdings include Bosch Limited, NTPC, Infosys Limited, Bajaj Finance Limited, Axis Bank, ICICI Lombard General Insurance, Dixon Technologies Limited, Cyient DLM, Kaynes Technology India Limited, and others.
Key Considerations Before Investing in Retirement Funds in 2024
Before making an investment in the finest mutual funds for retirement planning, it’s essential to consider the following:
- Establish Your Investing Objectives Make sure the mutual funds you select satisfy your needs and inspire you by matching your investment goals with theirs.
- Specify your retirement objectives, including when you hope to retire, the kind of lifestyle you want, and any significant costs you foresee, such as travel or medical care.
- Previous Results
Examine the mutual fund’s past performance over various time periods. Seek out mutual funds with a track record of reliable returns and evaluate each fund’s performance in relation to its benchmark.
- Select Your Method of Payment
Depending on your future requirements and objectives, choose whether you would rather receive a lump sum or regular payments at the end of your investing period.
- Tax Repercussions
- To maximize your retirement savings, choose tax-efficient investments, considering factors such as the capital gains tax rates on debt and equity funds.
- Temporal Range
Think about how long you have till you retire. While shorter time horizons might necessitate more cautious tactics, longer time horizons might permit more aggressive investment techniques.
- Think About Your Tolerance for Risk
Investigate the kinds of assets retirement funds have to learn about the degree of risk and volatility associated with it. Determine your level of comfort with market swings, age, and financial condition when assessing your risk tolerance. While older investors might favor more safe investments, younger investors can typically afford to take on greater risk.
- Availability of liquid assets
Consider the mutual funds’ liquidity, particularly if you think you’ll need to access your money before you retire. Certain funds could impose limitations or fines on early withdrawals.
The Final Word
Investing in the top retirement funds might be a wise decision for people hoping to improve their financial situation down the road. But keep in mind to evaluate your portfolio and take into account the previously listed aspects before purchasing these funds.
Additionally, keep in mind that market risk might affect mutual funds. For extra advice, you should think about speaking with a financial professional or carefully selecting the mutual funds for your portfolio.
| Selection Standards for Mutual Funds for the Best Mutual Funds Mentioned Above The 3-year annualized results are the basis for listing these mutual funds. The choices are presented in a descending sequence. It’s crucial to remember that a mutual fund’s performance cannot be guaranteed by 3-year returns. It can be used as a criterion, nevertheless, to narrow down mutual funds within a category. Investors need to understand that a number of other elements, including market trends, managerial effectiveness, and financial health, are important in deciding if an investment will actually be successful. The mutual fund selection made by Groww Invest Tech Pvt. Ltd. (previously Nextbillion Technology Pvt. Ltd.) should not be interpreted as investing advice, recommendations, offers, or solicitations of offers to invest in any mutual fund. |