Retirement mutual funds, alongside conventional options like NPS, PPF, and EPF, offer a balanced mix of equity and debt. These funds usually have a lock-in period of 5 years or until retirement age, making them more flexible than ELSS (Equity Linked Savings Scheme). Investors with a higher risk appetite can benefit from these funds’ equity allocation.
Here are the top 3 retirement funds that have more than doubled investors’ money in 5 years:
1. HDFC Retirement Savings Fund-Equity- Direct Plan (G):
- Rating: 5-star by Value Research
- Asset Size: Rs 5,159.4 crore
- NAV: Rs 54.17
- Expense Ratio: 0.67%
- Minimum Investment: Rs 100 (lump sum), Rs 100 (SIP)
- Benchmark: Nifty 500 TRI
- Top Holdings: HDFC Bank, ICICI Bank, Axis Bank, SBI, Infosys
- Returns: 22.5% since inception (February 2016)
- SIP Growth: A Rs 10,000 monthly SIP over 5 years (total Rs 6 lakh) is now worth over Rs 12.6 lakh, an annualized yield of 30.22%.
2. ICICI Prudential Retirement Fund- Pure Equity Plan- Direct Plan (G):
- Rating: 5-star by Value Research
- Asset Size: Rs 795.85 crore
- NAV: Rs 32.13
- Expense Ratio: 0.76%
- Minimum Investment: Rs 5,000 (lump sum), Rs 100 (SIP)
- Benchmark: Nifty 500 TRI
- Top Holdings: Bharti Airtel, Ambuja Cements, DLF, Ultratech Cement, L&T, Tech Mahindra, Inox Wind
- Returns: 24.54% since inception (February 2019)
- SIP Growth: A Rs 10,000 monthly SIP over 5 years (total Rs 6 lakh) is now worth over Rs 13.4 lakh, an annualized yield of 32.85%.
3. ICICI Prudential Retirement Fund- Hybrid Aggressive Plan- Direct Plan (G):
- Rating: 4-star by Value Research
- Asset Size: Rs 476.86 crore
- NAV: Rs 26.27
- Expense Ratio: 0.85%
- Minimum Investment: Rs 5,000 (lump sum), Rs 100 (SIP)
- Benchmark: CRISIL Hybrid 35+65 Aggressive Index
- Top Holdings: Bharti Airtel, Jindal Stainless, Ultratech Cement, Ambuja Cements, Bharat Electronics, Indigo
- Returns: 19.92% since inception (February 2019)
- SIP Growth: A Rs 10,000 monthly SIP over 5 years (total Rs 6 lakh) is now worth Rs 11.44 lakh, an annualized yield of 26.16%.
