India is seeing a growing interest in mutual funds for retirement. Investors want a mix of growth and safety. Here are five funds that can help build a balanced portfolio.
Why Retirement Funds Are Growing Fast
Mutual funds for retirement have seen big gains in trust and assets. Assets under management (AUM) rose from ₹9,800 crore in June 2020 to ₹31,973 crore in June 2025. That is a 226 percent jump in five years. Regulation and greater transparency helped a lot.
1. HDFC Retirement Savings Fund – Equity Plan
- AUM: about ₹6,009-6,611 crore.
- Five‑year CAGR: around 24.8 %-24.9 %.
- Three‑year CAGR: roughly 19.5 %-19.5 %.
Good for long-term growth through equity exposure.
2. ICICI Prudential Retirement Fund – Pure Equity Plan
- AUM: ₹1,050-1,333 crore.
- Five‑year CAGR: about 24.9 %.
- Three‑year CAGR: around 20.7 %.
Great for aggressive growth in early retirement years.
3. Nippon India Retirement Fund – Wealth Creation Scheme
- AUM: approx. ₹3,336 crore.
- Five‑year CAGR: around 17.6 %.
Moderate growth with a balanced risk‑return.
4. Tata Retirement Savings Fund – Moderate or Progressive Plan
- AUM: ₹2,108-2,182 crore.
- Five‑year CAGR: 14.8 %-16.3 % depending on plan.
Useful for investors who want a middle‑path between equity and stability.
5. A Hybrid or Multi-Asset Fund (e.g., HDFC Balanced Advantage or Multi-Asset Funds)
- HDFC Balanced Advantage Fund (Dynamic) – 5‑year CAGR: ~22.3 %.
- Quant Multi‑Asset Fund – 5‑year CAGR: ~28 %.
These funds adjust between equity, debt, and others. They stabilize returns and reduce risk.
How to Mix These Funds for Balance
Here’s an easy mix to think about:
- Early years (e.g., age 30-40):
Heavy in equity funds like ICICI or HDFC Equity Plans. Add a hybrid fund. - Mid years (e.g., age 40-50):
Add more of Nippon India Wealth Creation and Tata Moderate. Keep a hybrid fund. - Near retirement (e.g., 50+):
Move some money into hybrid funds or even debt to reduce volatility.
Use SIPs (Systematic Investment Plans) to spread risk and build steadily.
Simple Take-Away
| Fund Type | Example Funds | Key Features |
|---|---|---|
| Equity Growth | HDFC Equity, ICICI Equity | High returns (20-25% per year) |
| Moderate Growth | Nippon India Wealth, Tata Plans | Balanced risk and good upside |
| Hybrid | HDFC Balanced Advantage, Multi-Asset | Stability, auto asset mix, steadier returns |
Final Tips
- Start early to benefit from compounding.
- Use a blend: equity + moderate + hybrid.
- Review your mix every few years.
- Consider tax and risk before investing.
