What are the different types of retirement plans available?

Options include retirement mutual funds, NPS, EPF, PPF, annuity plans, and ULIPs. Each plan differs in returns, lock-in, and tax treatment based on investment type and tenure.

Are retirement funds high risk?

Retirement funds are usually moderate-risk, combining equity and debt. Risk levels depend on the fund’s asset allocation, with younger investors typically having more equity exposure for higher potential growth.

What are the expected returns of retirement funds?

Returns vary by fund type and market conditions. Debt-heavy retirement funds may offer 6–8%, while equity-oriented ones could deliver 10–12% over the long term, though not guaranteed.

Are retirement funds safe?

Retirement funds are relatively safe when held long-term. They balance risk through diversified investments, but like all market-linked products, they aren’t risk-free and may fluctuate in value.

Do retirement funds have a lock-in period?

Yes, most retirement mutual funds have a lock-in of 5 years or until age 60, whichever is earlier, to promote long-term investing and discourage early withdrawals.

What is the ideal age to start investing in mutual funds for retirement?

The best time to start is in your 20s or early 30s. Early investing allows compounding to work in your favor, reducing pressure closer to retirement.

Can I withdraw money from my retirement mutual fund before retirement?

Early withdrawals are generally discouraged and may attract penalties or exit loads. However, partial redemptions are allowed in some cases, depending on the fund’s specific rules.

Retirement Mutual Funds

Retirement Funds are designed to help individuals build a financial cushion for life after work. These mutual funds focus on long-term wealth creation by investing in a mix of equity, debt, or hybrid instruments, depending on the investor’s age and risk tolerance. The goal is simple: provide steady growth during your working years and generate income post-retirement. What sets retirement mutual funds apart is their structured investment approach, often with a 5-year lock-in period, encouraging disciplined savings. Whether you’re in your 30s or approaching your 60s, investing early in a retirement fund can make a big difference in ensuring a financially independent and stress-free retirement.

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List of Retirement Mutual Funds

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Search Result - 29 Mutual Funds

Fund Name	Fund Size (Cr.)	3Y Returns	5Y Returns

Fund Name	1Y Returns	Rating	Fund Size (Cr.)

What is the Purpose of Retirement Funds?

The primary purpose of Retirement Mutual Funds is to help individuals accumulate a sufficient financial cushion for life after work. These funds are designed to promote disciplined, long-term investing by gradually building wealth over your earning years.

Unlike short-term investments, Retirement Funds focus on capital preservation, regular income generation, and inflation-beating growth. By combining equity for growth and debt for stability, they offer a balanced approach to securing your post-retirement lifestyle.

These funds also encourage early and consistent saving through features like lock-in periods and limited withdrawal options. The aim is not just to grow money—but to ensure it lasts when your active income stops.

Ultimately, Retirement Mutual Funds are built to provide financial independence, peace of mind, and steady income during your retirement years, helping you maintain your lifestyle without relying on others.

Features of Retirement Mutual Funds

Lower Risk Exposure: A key retirement mutual fund feature is its focus on safer assets like government bonds, offering stable returns with minimal volatility.
Hybrid Investment Strategy: These funds adopt a balanced approach, investing in both equity and debt—typically with 40–50% equity—to manage risk and support steady growth.
Flexible Withdrawal Options: Post-retirement, investors can choose lump sum payouts or monthly withdrawals, making this a practical retirement mutual fund feature for income planning.
Extended Lock-In Period: With a five-year or age-based lock-in, this retirement mutual fund feature promotes compounding and reduces the impact of market fluctuations.

Who Should Invest in Retirement Funds?

Individuals Planning for a Steady Post-Retirement Income: If you aim to receive regular income during your golden years, investing in retirement mutual funds can help manage rising living costs effectively.
Young Professionals in Their 20s or 30s: Starting early allows more time for compounding. Even allocating a small portion of your portfolio to Retirement Mutual Fund Investment can build a solid corpus over time.
Investors Seeking Diversification: If you're looking to balance your equity-heavy portfolio, retirement funds in India provide a well-managed mix of debt and equity for long-term stability.
Anyone Planning a Worry-Free Retirement: If you want to prepare for future expenses like healthcare, travel, or daily living, invest in retirement mutual fund options tailored for inflation-adjusted income.

How to Invest in a Retirement Mutual Fund?

Open an Account on 5paisa: Begin by creating your free investment account on 5paisa.com. The registration process is seamless, secure, and 100% digital.
KYC Completion: Upload your PAN, Aadhaar, and bank details to complete KYC verification. This step unlocks access to all retirement fund options.
Search for Retirement Funds: Use 5paisa’s comparison tools to browse top-rated retirement mutual funds. Filter by performance, fund house, and risk profile.
Evaluate the Fund Strategy: Review asset allocation, fund manager experience, and long-term returns to pick a fund aligned with your retirement goals.
Start Your Investment Journey: Choose between SIPs and lump sum modes. Whether you’re planning early or catching up late, 5paisa makes retirement fund investment easy and paperless.

Factors to Consider While Investing in Retirement Funds

Risk Tolerance: Different retirement funds in India come with varying levels of equity exposure. If you're more risk-averse, opt for debt-heavy options. Those with a longer time horizon can consider balanced or equity-tilted funds.
Investment Horizon and Inflation:To benefit from compounding, the earlier you invest in retirement mutual fund options, the better. Also, account for inflation—your savings should grow enough to retain purchasing power years down the line.
Payout Mode: Decide whether you want monthly income post-retirement or a lump sum amount. Many retirement funds offer systematic withdrawal plans (SWPs), which can help create a steady stream of income.
Fund Lock-in Period: Most retirement funds in India have a 5-year lock-in or until the age of 60. Make sure you're comfortable with limited liquidity during this phase, especially if you might need access to funds.

Advantages of Investing in Retirement Funds

Disciplined Long-Term Saving: The built-in lock-in and goal-specific nature of retirement funds promote financial discipline—helping you stay on track for retirement.
Tax Efficiency: Certain retirement mutual funds offer tax benefits under Section 80C, making them attractive for both savings and tax planning.
Power of Compounding Returns: When you invest in retirement mutual fund plans early and stay invested, your returns benefit from compounding—where gains begin generating their own returns over time.
Professional Management: Your investment is handled by experienced fund managers who structure portfolios to manage risk, capture market opportunities, and keep your retirement plan on track.
Customisation Based on Age: Another advantage of retirement funds is age-appropriate strategy—young investors get growth-focused portfolios, while older investors benefit from safety-first allocations.

Risks Involved with Retirement Mutual Funds

Fund May Fall Short in Emergencies: Retirement funds are generally built for steady, long-term income, not sudden large expenses. In the event of an emergency, your available corpus might not be enough to cover the costs, especially if you rely solely on this investment.
Possibility of Outliving Your Savings: One of the more overlooked risks is longevity. If your retirement plan isn't sized correctly, there's a chance you could exhaust your savings while still needing income—leaving you financially exposed in your later years.
Exposure to Market Fluctuations: Though retirement mutual funds often include debt components, they still carry some equity exposure. This means returns can be affected by market downturns, especially if you're nearing retirement and your portfolio hasn’t shifted to a more conservative mix.
Impact of Rising Inflation: If your monthly payout or final corpus isn’t inflation-adjusted, the real value of your savings can decline over time. What feels sufficient today might lose purchasing power years down the line, eroding the benefit of consistent payouts.

Taxability of Retirement Funds

When you invest in retirement mutual fund schemes, the contributions you make may qualify for tax benefits under Section 80C of the Income Tax Act. You can claim deductions of up to ₹1.5 lakh annually on the amount invested, whether it's through new purchases or renewal of existing retirement fund plans.

However, while the contributions are eligible for tax deductions, withdrawals—especially in the form of monthly annuities—are taxable. Periodic pension payouts are taxed as regular income, similar to how your salary is taxed under current income tax slabs.

If you choose to withdraw the entire retirement mutual fund investment as a lump sum after retirement, the tax implications may vary. For government employees, such lump sum payouts are often fully exempt from taxation. In contrast, non-government employees are allowed only partial exemptions.

For instance, if the retirement fund includes gratuity, up to one-third of the total withdrawal may be tax-free. Without gratuity, as much as half of the lump sum amount could be exempt from tax, subject to prevailing rules.

In cases where a family member receives the retirement benefit as a monthly annuity, it is taxed under the "income from other sources" category. That said, there is limited tax relief available—typically, up to ₹15,000 or one-third of the annuity (whichever is lower) may be tax-exempt.

Keep in mind, the exact tax liability on retirement funds in India depends on the fund structure, your employment type, and how you choose to receive the payout. It's wise to consult a tax advisor before finalising your withdrawal strategy.

Are Retirement Mutual Funds Right for You?

The amount you need to retire comfortably depends on several personal factors—your current lifestyle, expected retirement age, life expectancy, inflation rate, and future healthcare needs. A general rule is to accumulate at least 20–25 times your expected annual expenses post-retirement. For instance, if you plan to spend ₹6 lakhs a year after retiring, you’ll need a corpus of around ₹1.2–1.5 crores.

To reach this goal, start early and invest regularly. Systematic Investment Plans (SIPs) in retirement mutual funds are a popular way to build your savings gradually. They offer the benefit of rupee cost averaging and help develop investment discipline.

Also, consider inflation while estimating future expenses. What costs ₹50,000 today could easily double in 20 years. Tools like retirement calculators can help you adjust for inflation and track your progress. The sooner you start planning and investing, the less pressure you’ll face later.

Popular Retirement Mutual Funds

Fund Name
Min Investment Amt
AUM
3Y Returns

Retirement Mutual Funds

Kickstart your SIP journey with just ₹100!

List of Retirement Mutual Funds

Category

Sub Category

Rating

What is the Purpose of Retirement Funds?

Features of Retirement Mutual Funds

Who Should Invest in Retirement Funds?

How to Invest in a Retirement Mutual Fund?

Factors to Consider While Investing in Retirement Funds

Advantages of Investing in Retirement Funds

Risks Involved with Retirement Mutual Funds

Taxability of Retirement Funds

Are Retirement Mutual Funds Right for You?

Popular Retirement Mutual Funds

ICICI Pru Retirement Fund - Pure Equity - Dir Growth

₹ 100

₹ 1,6420

24.76%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 1,642

3Y Return

24.76%

ICICI Pru Retirement Fund - Hybrid AP - Dir Growth

₹ 100

₹ 1,0820

21.94%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 1,082

3Y Return

21.94%

HDFC Retirement Savings Fund - Equity - Dir Growth

₹ 100

₹ 7,0860

17.71%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 7,086

3Y Return

17.71%

Union Retirement Fund - Direct Growth

₹ 500

₹ 1920

17.68%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 192

3Y Return

17.68%

Nippon India Retirement Fund-WC - Dir Growth

₹ 100

₹ 3,1940

17.24%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 3,194

3Y Return

17.24%

Tata Retirement Savings Fund - Progressiv-Dir Growth

₹ 150

₹ 2,1080

16.15%

Min SIP Investment Amt

₹ 150

AUM (Cr.)

₹ 2,108

3Y Return

16.15%

Aditya Birla SL Retirement-The 30s Plan-Dir Growth

₹ 500

₹ 4310

16.14%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 431

3Y Return

16.14%

AXIS Retirement Fund - DP - Direct Growth

₹ 1000

₹ 3060

15.97%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 306

3Y Return

15.97%

AXIS Retirement Fund - AP - Direct Growth

₹ 1000

₹ 7560

15.24%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 756

3Y Return

15.24%

Tata Retirement Savings Fund - Moderate-Dir Growth

₹ 150

₹ 2,1660

15.23%

Min SIP Investment Amt

₹ 150

AUM (Cr.)

₹ 2,166

3Y Return

15.23%

Other Calculators

FAQs

What are the different types of retirement plans available?

Are retirement funds high risk?

What are the expected returns of retirement funds?

Are retirement funds safe?

Do retirement funds have a lock-in period?

What is the ideal age to start investing in mutual funds for retirement?

Can I withdraw money from my retirement mutual fund before retirement?

Open Free Demat Account

Retirement Mutual Funds

Kickstart your SIP journey with just ₹100!

List of Retirement Mutual Funds

Category

Sub Category

Rating

What is the Purpose of Retirement Funds?

Features of Retirement Mutual Funds

Who Should Invest in Retirement Funds?

How to Invest in a Retirement Mutual Fund?

Factors to Consider While Investing in Retirement Funds

Advantages of Investing in Retirement Funds

Risks Involved with Retirement Mutual Funds

Taxability of Retirement Funds

Are Retirement Mutual Funds Right for You?

Popular Retirement Mutual Funds

ICICI Pru Retirement Fund - Pure Equity - Dir Growth ₹ 100 ₹ 1,6420 24.76% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 1,642 3Y Return 24.76%

ICICI Pru Retirement Fund - Hybrid AP - Dir Growth ₹ 100 ₹ 1,0820 21.94% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 1,082 3Y Return 21.94%

HDFC Retirement Savings Fund - Equity - Dir Growth ₹ 100 ₹ 7,0860 17.71% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 7,086 3Y Return 17.71%

Union Retirement Fund - Direct Growth ₹ 500 ₹ 1920 17.68% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 192 3Y Return 17.68%

Nippon India Retirement Fund-WC - Dir Growth ₹ 100 ₹ 3,1940 17.24% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 3,194 3Y Return 17.24%

Tata Retirement Savings Fund - Progressiv-Dir Growth ₹ 150 ₹ 2,1080 16.15% Min SIP Investment Amt ₹ 150 AUM (Cr.) ₹ 2,108 3Y Return 16.15%

Aditya Birla SL Retirement-The 30s Plan-Dir Growth ₹ 500 ₹ 4310 16.14% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 431 3Y Return 16.14%

AXIS Retirement Fund - DP - Direct Growth ₹ 1000 ₹ 3060 15.97% Min SIP Investment Amt ₹ 1000 AUM (Cr.) ₹ 306 3Y Return 15.97%

AXIS Retirement Fund - AP - Direct Growth ₹ 1000 ₹ 7560 15.24% Min SIP Investment Amt ₹ 1000 AUM (Cr.) ₹ 756 3Y Return 15.24%

Tata Retirement Savings Fund - Moderate-Dir Growth ₹ 150 ₹ 2,1660 15.23% Min SIP Investment Amt ₹ 150 AUM (Cr.) ₹ 2,166 3Y Return 15.23%

Other Calculators

FAQs

What are the different types of retirement plans available?

Are retirement funds high risk?

What are the expected returns of retirement funds?

Are retirement funds safe?

Do retirement funds have a lock-in period?

What is the ideal age to start investing in mutual funds for retirement?

Can I withdraw money from my retirement mutual fund before retirement?

Open Free Demat Account

ICICI Pru Retirement Fund - Pure Equity - Dir Growth

₹ 100

₹ 1,6420

24.76%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 1,642

3Y Return

24.76%

ICICI Pru Retirement Fund - Hybrid AP - Dir Growth

₹ 100

₹ 1,0820

21.94%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 1,082

3Y Return

21.94%

HDFC Retirement Savings Fund - Equity - Dir Growth

₹ 100

₹ 7,0860

17.71%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 7,086

3Y Return

17.71%

Union Retirement Fund - Direct Growth

₹ 500

₹ 1920

17.68%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 192

3Y Return

17.68%

Nippon India Retirement Fund-WC - Dir Growth

₹ 100

₹ 3,1940

17.24%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 3,194

3Y Return

17.24%

Tata Retirement Savings Fund - Progressiv-Dir Growth

₹ 150

₹ 2,1080

16.15%

Min SIP Investment Amt

₹ 150

AUM (Cr.)

₹ 2,108

3Y Return

16.15%

Aditya Birla SL Retirement-The 30s Plan-Dir Growth

₹ 500

₹ 4310

16.14%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 431

3Y Return

16.14%

AXIS Retirement Fund - DP - Direct Growth

₹ 1000

₹ 3060

15.97%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 306

3Y Return

15.97%

AXIS Retirement Fund - AP - Direct Growth

₹ 1000

₹ 7560

15.24%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 756

3Y Return

15.24%

Tata Retirement Savings Fund - Moderate-Dir Growth

₹ 150

₹ 2,1660

15.23%

Min SIP Investment Amt

₹ 150

AUM (Cr.)

₹ 2,166

3Y Return

15.23%