scorecardresearchAccumulate your desired retirement corpus with these 5 funds

Accumulate your desired retirement corpus with these 5 funds

Updated: 06 Jan 2023, 10:15 AM IST

Retirement planning is the most important yet ignored aspect of financial planning, here Mintgenie explains five funds that can help you in achieving them.

The Senior Citizen Savings Scheme is a retirement benefits programme backed by the Government of India.

The Senior Citizen Savings Scheme is a retirement benefits programme backed by the Government of India.

When your financial objective is to achieve something after a long period of time, invest money in the equity of the companies as they give much better returns than debt-based funds or conventional methods of investing like fixed deposits. However, it totally depends on your preferable risk appetite, but investing in the right equity will let you grow your money along with the company or industry in which you have invested in.

Retirement planning is a long-term investment plan, let’s understand which investment plan will help you in achieving your desired retirement corpus.

Large-cap funds

If you are not looking forward to taking the risk of losing capital with your hard-earned money, large-cap funds might be a suitable investment option for you. Large-cap funds refer to the funds when a mutual fund company invests a major portion in the companies that have large capitalization, which is more than 20,000 cr., like Reliance, TCS, and HDFC. These companies tend to give you stable returns, with less risk of loss of capital as these companies are mature enough to go bankrupt.

Hybrid funds

Hybrid funds means funds in which your money will get invested in equity and debt in a pre-decided proportion. By investing in this way, you will be able to secure your return with the help of debt funds, as a fixed-income investment, you will get a fixed amount of interest every interval irrespective of the profit and losses of the company. It might be a suitable option for you if you do not have a risk appetite to lose return on investment as capital as well.

Multi cap funds

If you can take a moderate risk to invest your money, with the expectation of better return in comparison to previous ones. Multi-cap funds are the funds in which your money will be invested in small, large, and mid-cap funds with at least 25% in each. You will be able to get the stability factor of large-cap funds and the growth factor of mid and small-cap funds.

Mid and small-cap funds

Investing in mid and small-cap funds helps you capture the level of growth as small and mid-cap companies grow more rapidly than large-cap companies, majorly because large-cap companies are mature enough to grow but mid and small-cap companies are at a growing stage. The stock price of mid and small-cap funds are comparatively low as they are at a struggling stage and in very recent times, they tend to develop as mature.

Sector funds

Sector funds are a highly risky investment option in which you will be investing in a particular sector or an industry that has a great potential to grow your money rapidly in your retirement tenure. For example, if you think that the EV industry is growing and the government is also supporting it because of climate control pressures, you can invest in EVs to grow your money massively. It is a highly risky investment and you need to research a lot before investing in the same.

Your retirement planning is a crucial part of personal finance as you cannot afford to lose the lifestyle you are living right now. You need to maintain your lifestyle even after your retirement, so be careful where you are investing your money for retirement.

Anushka Trivedi is a freelance financial content writer. She can be reached at

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First Published: 06 Jan 2023, 10:15 AM IST