Planning your retirement early makes building a decent corpus so much easier. Honestly, with prices and medical bills going up like crazy, just keeping money in savings isn’t going to work. That is exactly where investing smart comes in. In this post, we will break down the best retirement mutual fund in India and the top 10 pension plans in India so you can figure out your next steps without the confusion.
What Are Retirement Mutual Funds?
Retirement mutual funds are investment schemes designed to build a substantial corpus for retirement over the long term. These funds primarily invest the money in equity, debt, or a mix of both. They typically come with a lock-in period of five years or until retirement age, whichever occurs earlier. If you wish to remain financially independent in the future, mutual funds for retirement can be an excellent long-term investment option.
TOP 10 Best Retirement Mutual Funds in India (2026)
- ICICI Prudential Retirement Fund Pure Equity Plan Direct Growth
- HDFC Retirement Savings Fund Equity Plan Direct Growth
- Nippon India Retirement Fund Wealth Creation Scheme Direct Growth
- HDFC Retirement Savings Fund Hybrid Equity Plan Direct Growth
- Tata Retirement Savings Fund Progressive Plan Direct Growth
- Aditya Birla Sun Life Retirement Fund The 30S Plan Direct Payout of IDCW Payout
- UTI Retirement Fund
- SBI Retirement Benefit Fund Aggressive
- Axis Retirement Fund – Dynamic Plan
- Franklin India Retirement Fund Direct Plan Growth
Overview of best retirement mutual funds in india
1. ICICI Prudential Retirement Fund – Pure Equity Plan
The ICICI Prudential Retirement Fund – Pure Equity Plan was launched on February 7, 2019. It is a fund within the retirement solutions category, focusing on building a retirement corpus for investors over the long term. Its portfolio comprises several robust sectors and major Indian companies.
| Details | Information |
|---|---|
| Current NAV | ₹39.14 |
| 3-Year Return | 23.90% |
| 5-Year Return | 22.80% |
| Minimum SIP | ₹100 |
| AUM | ₹1,923.76 crore |
| Expense Ratio | 0.88% |
| Fund Managers | Darshil Dedhia, Rohit Lakhotia, Sanket Gaidhani |
2. HDFC Retirement Savings Fund – Equity Plan
The HDFC Retirement Savings Fund – Equity Plan was launched on February 5, 2016. It is a scheme falling under the retirement solution category, designed with the objective of building a retirement corpus over the long term. Its portfolio includes companies from key sectors such as banking, energy, services, automobiles, and technology.
| Details | Information |
|---|---|
| Current NAV | ₹55.83 |
| 3-Year Return | 12.31% |
| 5-Year Return | 14.44% |
| Minimum SIP | ₹100 |
| AUM | ₹6,660 crore |
| Expense Ratio | 0.96% |
| Fund Managers | Amar Kalkundrikar, Srinivasan Ramamurthy, Arun Agarwal, Nandita Menezes, Anupam Joshi |
3. Nippon India Retirement Fund – Wealth Creation Scheme
The Nippon India Retirement Fund – Wealth Creation Scheme was launched on January 22, 2015. It is a scheme falling under the retirement solution category, aimed at creating wealth for investors over the long term. The fund’s portfolio is spread across key sectors such as banking, energy, capital goods, services, and technology, thereby ensuring investment diversification.
| Details | Information |
|---|---|
| Current NAV | ₹32.60 |
| 3-Year Return | 14.54% |
| 5-Year Return | 13.74% |
| Minimum SIP | ₹500 |
| AUM | ₹3,035 crore |
| Expense Ratio | 1.30% |
| Fund Managers | Pranay Sinha, Ritesh Rathod, Amber Singhania |
4. HDFC Retirement Savings Fund – Hybrid Equity Plan
The HDFC Retirement Savings Fund – Hybrid Equity Plan was launched on February 5, 2016. It is a hybrid scheme within the retirement solutions category that maintains a mix of both equity and debt. Its objective is to achieve capital appreciation over the long term while maintaining a balanced portfolio.
| Details | Information |
|---|---|
| Current NAV | ₹42.89 |
| 3-Year Return | 9.95% |
| 5-Year Return | 11.01% |
| Minimum SIP | ₹100 |
| AUM | ₹1,592 crore |
| Expense Ratio | 1.12% |
| Fund Managers | Amar Kalkundrikar, Srinivasan Ramamurthy, Arun Agarwal, Nandita Menezes, Anupam Joshi |
5. Tata Retirement Savings Fund – Progressive Plan
The Tata Retirement Savings Fund – Progressive Plan was launched on January 1, 2013. It is an equity-oriented scheme within the retirement solution category that focuses on long-term capital appreciation. Its portfolio comprises companies from diverse sectors such as financials, consumer staples, services, capital goods, and energy.
| Details | Information |
|---|---|
| Current NAV | ₹84.00 |
| 3-Year Return | 16.06% |
| 5-Year Return | 12.96% |
| Minimum SIP | ₹150 |
| AUM | ₹2,132 crore |
| Expense Ratio | 0.83% |
| Fund Managers | Sonam Udasi, Murthy Nagarajan |
6. Aditya Birla Sun Life Retirement Fund – The 30s Plan
Aditya Birla Sun Life Retirement Fund – The 30s Plan was launched on February 19, 2019. It is a scheme under the retirement solution category, designed for investors who wish to start retirement planning at a relatively young age. The fund’s investments are spread across key sectors such as financials, services, automobiles, healthcare, and technology.
| Details | Information |
|---|---|
| Current NAV | ₹24.95 |
| 3-Year Return | 18.02% |
| 5-Year Return | 13.49% |
| Minimum SIP | ₹500 |
| AUM | ₹444 crore |
| Expense Ratio | 1.35% |
| Fund Managers | Jonas Bhutta |
7. UTI Retirement Fund
The UTI Retirement Fund was launched on January 1, 2013. It is a hybrid scheme within the retirement solution category that invests in both equity and debt. Its objective is to achieve capital appreciation over the long term while maintaining investment stability, thereby facilitating better retirement planning.
| Details | Information |
|---|---|
| Current NAV | ₹54.97 |
| 3-Year Return | 10.36% |
| 5-Year Return | 10.35% |
| Minimum SIP | ₹500 |
| AUM | ₹4,608 crore |
| Expense Ratio | 1.09% |
| Fund Managers | V Srivatsa, Anurag Mittal |
8. SBI Retirement Benefit Fund – Aggressive Plan
The SBI Retirement Benefit Fund – Aggressive Plan was launched on January 20, 2021. It is an aggressive scheme within the retirement solution category, focusing on the potential for superior long-term growth. Its portfolio includes companies from key sectors such as financials, capital goods, automobiles, materials, and construction.
| Details | Information |
|---|---|
| Current NAV | ₹21.52 |
| 3-Year Return | 10.53% |
| 5-Year Return | 13.44% |
| Minimum SIP | ₹500 |
| AUM | ₹3,000 crore |
| Expense Ratio | 1.05% |
| Fund Managers | Ardhendu Bhattacharya, Rohit Shimpi |
9. Axis Retirement Fund – Dynamic Plan
The Axis Retirement Fund – Dynamic Plan was launched on November 29, 2019. It is a dynamic hybrid scheme within the retirement solution category, allowing for the adjustment of equity and debt allocations based on market conditions. Its portfolio includes key sectors such as financials, healthcare, energy, automobiles, and consumer staples.
| Details | Information |
|---|---|
| Current NAV | ₹21.58 |
| 3-Year Return | 13.00% |
| 5-Year Return | 10.00% |
| Minimum SIP | ₹1,000 |
| AUM | ₹280 crore |
| Expense Ratio | 1.39% |
| Fund Managers | Jayesh Sundar, Devang Shah, Hardik Shah |
10. Franklin India Retirement Fund
The Franklin India Retirement Fund was launched on January 1, 2013. It is a hybrid scheme within the retirement solution category that invests in both equity and debt. Its objective is to create a balanced investment portfolio for retirement that delivers stable returns over the long term.
| Details | Information |
|---|---|
| Current NAV | ₹241.93 |
| 3-Year Return | 9.15% |
| 5-Year Return | 8.05% |
| Minimum SIP | ₹1,000 |
| AUM | ₹492 crore |
| Expense Ratio | 1.48% |
| Fund Managers | Rajasa Kakulavarapu, Pallab Roy, Anuj Tagra, Ajay Argal |
Read Also: Best Pension Funds in India
How to Choose the Best Retirement Mutual Fund
First, determine how many years remain until your retirement. If you have a long time horizon, equity funds may be preferable, whereas choosing a balanced fund is a wise move if the time remaining is short.
- Assess your risk appetite: Select a fund that allows you to continue investing without panic, even during market fluctuations.
- Look at past performance: Don’t just look at recent returns; examine how the fund has performed across different market cycles over the past 5–10 years.
- Review the portfolio: Make sure to understand which companies and assets the fund invests in. A balanced portfolio helps mitigate risk.
- Check the expense ratio: The lower the fund’s expenses, the higher the likelihood of retaining more returns on your investment.
- Check the fund manager’s track record: Experienced fund managers can help implement better investment strategies over the long term, so it is important to review their track record.
- Choose between SIP and lump sum: If you can save regularly, an SIP is a good option. Alternatively, if you have a surplus amount available, you can opt for a lump sum investment.
How to invest in retirement mutual funds through Pocketful?
With Pocketful, you can start investing in your preferred retirement mutual funds in just a few simple steps.
Step 1: Open a free Demat account
Start by opening an account on Pocketful with the free account opening facility. You also get the benefit of zero AMC (Annual Maintenance Charges) for a lifetime.
Step 2: Add funds to your account
Once your account is active, transfer funds from your bank account for investment.
Step 3: Go to the Mutual Funds section
Navigate to the ‘Mutual Funds’ section from the home page of the app or website.
Step 4: Search for your scheme
Search for the name of the best retirement mutual fund you wish to invest in and view its details.
Step 5: Invest via SIP or Lump Sum
Choose the SIP or Lump Sum option based on your needs, enter the amount, and complete the investment.
Common Mistakes People Make While Planning Retirement
Even minor mistakes can significantly impact your retirement fund. Avoiding them helps keep your investments on the right track.
- Starting investments late: The earlier you start, the greater the benefit of compounding you will reap.
- Ignoring inflation: Future expenses could be far higher than current ones; therefore, plan while keeping inflation in mind.
- Relying on a single investment option: It is better to maintain a balanced investment portfolio rather than relying solely on EPF or PPF.
- Stopping SIPs during a market downturn: Continuing regular investments during a market slump rather than stopping them can prove beneficial in the long run.
- Failing to review the portfolio periodically: It is equally important to review and adjust your portfolio as needed.
- Choosing funds based solely on high returns: Always evaluate factors such as fund risk, investment strategy, and consistent performance.
- Not setting a clear retirement goal: Building the right retirement corpus can be difficult without a defined goal.
Read Also: Best Annuity Plans in India
Conclusion
No single fund works for everyone when it comes to retirement. That’s why you need to know your own risk limits before picking the best retirement mutual fund. With a clear plan and steady investing, mutual funds for retirement can easily handle the heavy lifting for your future security. You just have to stay disciplined. Start investing for your retirement goals with Mutual Funds on Pocketful. Explore 2,000+ mutual fund schemes with zero charges on mutual fund investments. Download the app and begin your wealth-building journey today.
Frequently Asked Questions (FAQs)
Which is the best retirement mutual fund?
The one that best suits your goals and risk appetite.
Can I start with a SIP in India?
Yes, most retirement funds offer SIPs.
Is there a lock-in period?
Yes, usually 5 years or until retirement.
Are retirement mutual funds safe?
They involve market risk, but are designed for long-term investments.
Can I withdraw money before retirement?
Withdrawals can be made only after the lock-in period is complete.
