| Mutual fund | AUM | NAV as on May 21, 2021 | SIP investment return 1 year | 3 year | 5 years |
|---|---|---|---|---|---|
| HDFC Retirement Savings Fund | Rs. 1433 crore | 24.23 | 66.00% | 42.00% | 52.00% |
| ICICI Prudential Balanced Advantage | Rs. 30900 crore | 45.5 | 14.87% | 25.00% | 35.00% |
| SBI small cap | Rs. 7919 crore | 86.8 | 42.00% | 61.00% | 77.00% |
| Parag Parikh Flexi Cap Fund | Rs. 9179 crore | 40.9 | 27.39% | 51.13% | 72.30% |
Through a SIP of Rs. 10000 per month, you can start investing into the scheme to earn a consistent return. During the last 1-year, a lump sum investment of Rs. 10000 is now valued at Rs 17971, giving an exceptional yield of 80%. And over a still longer time frame, the mutual fund gave an annualized return in the range of 12-19 percent (This is in case of lump sum investment into the mutual fund category).
Interestingly and typically, these retirement funds are for those investors who are undisciplined when it comes to investing and can't hold on to their investors. These MFs come with a lock in of either 5 years or until retirement.
If you have typically a longer term then this mutual fund shall be a good choice. This is a CRISIL 2 star rated scheme and has over a 1-year period generated a higher return than its benchmark of 41 percent. The fund's holdings are into some of the bluechip names, ICICI Bank, RIL, Infosys, HDFC twins, Bharti Airtel, Motherson Sumi among others.
This is a risky bet and is suitable for those investors who have a longer bet as well as a high risk tolerance. Being a highly aggressive fund, the fund managed to reap a high return of over 1 percent in the last 1-year as equity markets saw their best performance. The holdings of the fund include JK Cement, Elgi Equipment, Carborundum, Sheela Foam among others. The fund is categorized within the moderately high risk category.
After the evolution of these flexi cap schemes, this mutual fund category has gained huge investor acceptance. Know about the category of mutual fund. Now coming back to the prospects of this fund meeting your retirement goal, this fund over the last one year has underperformed its benchmark with return of 68 percent.
The fund is invested into international equity say for instance in Alphabet Inc-Class C shares, Microsoft corp, Facebook, Amazon.com and other than that its holding include ITC, Bajaj Holdings & Investments.
Note here we have listed mutual funds considering that your retirement goal is some 10 or even 15-20 years away. But notably, you would then require a substantially higher amount in comparison to what is current expense.
Also as and when you near your financial goal it is best to get off those investments and park the money into short term debt funds to protect your investments.