Mutual fund companies are coming up with Retirement plans in recent past , insurance companies have already flooded the market place with plethora of products which say they are made for your retirement planning. Do you really need all these or you need just simple mutual funds which can solve your purpose ? By the end of this article you will get the answer.
A decade ago it would have been unimaginable that a person in his 20s talk about retirement planning. Well that’s not the case any more things have changed now.
Now people have started to look for retirement solutions from staring year of their earning cycles. Gone are the days when Government use to give pension to employees after their retirement. Life expectancy has also increased with better medical facilities available so in turn you require a larger nest egg to take care of your sunset lives.
So how do you start planning for it. Well the answer is SSIP (Small Systematic Investment Plan) in Equity mutual fund. A small sum invested regularly over a long period of time will create wealth for you and in turn your retirement corpus. Equity Mutual funds provide inflation-beating better post tax returns over a long period.
Return offered by Various Equity Mutual funds over 10 Year: Large Cap category offered around 15% ; Multicap Category gave 18% and Mid and small caps gave 20% during this period.
Investment can be made after considering your risk profile and time horizon. For a conservative investor Large cap category offer better risk reward. For an Moderate Investor Multi Cap category will be rewarding and for an aggressive investor a portion of portfolio in small and mid cap will also do wonders.
Choose your scheme wisely which suits your goal and risk profile category and start SSIP for long term and sit back and relax.
Now coming to funds which are specifically created for retirement savings , these funds have typically lock-in period of 5 years. So if you think that in future you can face the urge to redeem your investments before reaching the retirement age , that you should definitely choose these retirement mutual funds to achieve your goals as they will not allow you to redeem before the lock-in or reaching your retirement age. Otherwise open ended mutual fund are equally good for you.
You can start your mutual fund investments using sign up on www.mutualfundeasy.com