Retirement Planning

Free from your work & family responsibilities. Is that all about being retired? Probably yes! You get free and have enough time to do whatever you like. Visiting multiple places, planting, reading books or just enjoying with your grandkids and so on. But in spite of being free from all the responsibilities you need a regular source of income to run your life smoothly. That regular source of income can be your pension or the PF where you have to save while your earning span. Well, sad but true – pension is no longer in the system now, be it a government organization or a private firm. So, you are now left only with your PF. But, will that be enough?

Why Mutual Funds For your Retirement Planning?

If you are a private sector or a self-employed person, retirement planning becomes a necessity for you. 

A mutual fund is one of the best investment tools which can beat inflation and can give you timely returns when you are retired.

In a mutual fund, you invest in your earning span with different investors in various equity stocks, debt and money market instruments. This, in the long run, offers excellent returns which can help you to fulfill your post-retirement needs.

How to Choose the Best Mutual Fund for Your Retirement?

Many people opt for a pension plan with other investment tools, to get regular income when they retire. But, opting for a mutual fund to plan your retirement is a way better idea. However, mutual funds too have several plans and one may get confused when they have to choose the best one. 

While you are planning for your retirement you have a long time to invest. So, here you can choose such a plan which offers you maximum returns in a long time.

Take your investment horizon from 20 to 30 years to get maximum returns.

look for such a plan where you need to invest a minimum.

Choose the one which offers a comparatively higher percentage of return. 

Systematic Investment Plan

Now you will be a little more confident to invest in Mutual Funds, another thing to consider is – which would be the simplest plan to start investing in Mutual Funds? 

  • The simplest & easiest way to start a mutual fund is SIP or Systematic Investment Plan.
  • A SIP is a feature which is available with most of the schemes.
  • This allows the investor to invest a fixed sum either monthly or quarterly, for a particular duration, which would be decided by you.
  • SIP can be started with a minimum amount as compared to other schemes.
  • With little installment in a SIP can pay you a lot in future. 
  • You can decide the amount of each installment!

Some of the Benefits of SIPs

  1.  You’re committed to investing a fixed amount regularly this creates disciplined finance for you.
  2. Minimum risk is involved.
  3. They ensure that your investment is not swayed by any market sentiment.
  4. You are free to choose any amount you are going to invest and the duration of the investment too.

Benefits of Planning your Retirement with Mutual Funds?

Here are the benefits you will get by opting for a mutual fund plan-


Mutual funds offer you more flexibility than any other pension plans. There is no boundation to invest more as well as there are no limitations on making any partial or entire withdrawal at any given point of time. This may reduce your returns but withdrawal is possible.


Mutual funds have a totally transparent system as compared to pension plans. This is because all the information regarding your scheme is made available to you, through the website or through the agent companies whom you are trusting to invest in behalf of you.

Tax Efficient:

Mutual funds are tax-efficient. Even after your retirement, your pension is counter as other sources of income and income tax is imposed on that. Whereas in mutual funds income tax is exempted in some cases. Such as long-term capital gains are tax-exempted up to ₹1 lakh, and in case of debt funds, tax exemption is after indexation, which most of the time reduces to nil.

Returns of Mutual Fund Investment based on Companies

  • Large-cap Mutual Funds offers a maximum return up to 23.22% and a minimum return of 8.75.
  • Mid-cap Mutual Fund offers a maximum return up to 25.45% and a minimum return of 10.61%
  • Small-cap Mutual Fund offers a maximum return up to 19.81% and a minimum of 10.28%
  • Multi-cap Mutual Fund offers a maximum return up to 25.45% and a minimum of 10.61%

Post-retirement life needs a stable and decent source of income to live a comfortable and worry-free life. And Using Mutual Fund investment planning for retirement can make this possible.