Retirement Tips: Early preparation for retirement is necessary, but these plans can give good returns even in 5 years..
The most important thing in retirement planning is regular investment. The sooner you start this work, the better it will be for you and your family. And when it comes to investing for retirement, mutual funds play a very important role in it. Mutual fund houses run special schemes for this purpose, which are called retirement funds. By investing in them, you can make your life after retirement safe and comfortable.
The best way to invest in them is to invest through regular SIP. Next, we will see which retirement plans have given the best returns in the last 5 years and how much benefit those who did regular SIP have got from them. But before that, let us know what is the full meaning of retirement funds.
What are retirement funds?
Retirement funds are such investment plans in which you deposit money during your working life and after retirement, you get regular income from them. These funds invest in both equity and debt instruments. Equity increases your chances of getting good returns while investing in debt reduces the risk. As per SEBI regulations, retirement funds have a lock-in period of at least 5 years or till the age of retirement. Plans giving best returns in 5 years
Lump sum investment: Rs 1 lakh
1. ICICI Prudential Retirement Fund - Pure Equity Plan
5-year annualized return (Direct Scheme): 27.79%
Monthly SIP: Rs 5,000
Annualized return on SIP in 5 years: 34.26%
Total investment in 5 years (Lump sum + SIP): Rs 4 lakh
The total value of the fund after 5 years: Rs 10,34,268
5-year annualized return on Lump sum + SIP investment: 31.22%
2. HDFC Retirement Savings Fund - Equity Plan
Lump sum investment: Rs 1 lakh
5-year annualized return: 27.20% (Direct Scheme)
Monthly SIP: Rs 5,000
5-year annualized return on SIP: 31.71%
Total investment (Lump Sum + SIP) in 5 years: Rs 4 lakh
The total value of the fund after 5 years: Rs 9,86,354
Annualized return on lump sum + SIP investment in 5 years: 29.59%
3. ICICI Prudential Retirement Fund - Hybrid Aggressive Plan
Lump sum investment: Rs 1 lakh
Annualized return on 5 years: 22.16% (Direct Scheme)
Monthly SIP: Rs 5,000
Annualized return on SIP in 5 years: 27.23%
Total investment (Lump Sum + SIP) in 5 years: Rs 4 lakh
The total value of the fund after 5 years: Rs 8,59,575
Annualized return on lump sum + SIP investment in 5 years: 24.91%
4. HDFC Retirement Savings Fund - Hybrid Equity Plan
Lump sum investment: Rs 1 lakh
5-year annualized return: 20.25% (Direct scheme)
Monthly SIP: Rs 5,000
Annualized return on SIP over 5 years: 23.33%
Total investment in 5 years (Lump sum + SIP): Rs 4 lakh
The total value of the fund after 5 years: Rs 7,86,559
5-year annualised return on Lump sum + SIP investment: 21.93%
5. Nippon India Retirement Fund - Wealth Creation Scheme
Lump sum investment: Rs 1 lakh
5-year annualized return: 20.11% (Direct scheme)
Monthly SIP: Rs 5,000
5-year annualized return on SIP over 5 years: 27.83%
Total investment in 5 years (Lump sum + SIP): Rs 4 lakh
The total value of the fund after 5 years: Rs 7,86,559 SIP): Rs 4 lakh
Total value of the fund after 5 years: Rs 8,59,575
Annualized return on lump sum + SIP investment in 5 years: 24.37%
Choose the right scheme carefully.
There are different types of retirement funds, some of which invest more in equity and some in debt funds. To decide which scheme is right for you, you need to know the details of the scheme as well as understand your risk profile.
Before taking any decision, also remember that the past performance of a mutual fund cannot be considered a guarantee of getting the same returns in the future. It would be better if you decide to invest only after taking the advice of your investment advisor.
