+91-22-48913909Best Retirement Mutual Funds 2026 – 2027
Retirement planning is an essential part of our life. Not many people start their retirement planning at an early age, but it is important as it takes a longer time to build the retirement corpus. Ideally, one should start planning their retirement right from their 20’s because it gives enough time to save.
And also, the longer you keep your money invested, the higher would be the returns in the equity market. So, let’s understand how one can attain their retirement goals by investing in Mutual Funds, along with the best retirement Mutual Funds to invest.
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Why Mutual Funds for Retirement Planning?
Mutual funds are considered to be a smart tool for planning, Financial goals like retirement, a child’s education, purchase of a house/car, world tour, etc. Mutual funds are particularly designed to suit the different investment needs of people. Investors can pick funds from a wide range of mutual fund schemes like equity, debt, and hybrid funds. The Security and Exchange Board of India (SEBI) has recently introduced a separate category called as ‘Solution Oriented Schemes’ that majorly includes retirement and child’s investment scheme.
The SEBI has given a separate category for these plans so that investors can easily plan their retirement in a disciplined manner. These solutions oriented retirement schemes come with a fixed tenure of 5 years or till the retirement. This is a good way to keep investors invested for a longer duration in order to attain their retirement investment goals. Investors who are keen to invest in this scheme, here are some of the schemes you can consider Investing in.
Fund Selection Methodology used to find 5 funds
Best Retirement Mutual Fund- Solution Oriented Schemes
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Sub Cat. Tata Retirement Savings Fund-Moderate Growth ₹67.0959
↑ 0.55 ₹2,145 14.7 3.5 1.6 13.2 10.9 1 Retirement Fund Tata Retirement Savings Fund - Progressive Growth ₹67.9516
↑ 0.63 ₹2,132 16.8 4.1 0.6 14.3 11.3 -1.2 Retirement Fund Tata Retirement Savings Fund - Conservative Growth ₹32.7328
↑ 0.07 ₹166 7.2 2.4 2.5 7.7 6.3 3.6 Retirement Fund HDFC Retirement Savings Fund - Equity Plan Growth ₹48.435
↑ 0.23 ₹6,660 6.7 -6.7 -5.9 10.9 13.1 5.2 Retirement Fund HDFC Retirement Savings Fund - Hybrid - Debt Plan Growth ₹21.8201
↑ 0.03 ₹151 3.5 -0.7 0.6 6.6 6.5 5.2 Retirement Fund Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Jul 26 Research Highlights & Commentary of 5 Funds showcased
Commentary Tata Retirement Savings Fund-Moderate Tata Retirement Savings Fund - Progressive Tata Retirement Savings Fund - Conservative HDFC Retirement Savings Fund - Equity Plan HDFC Retirement Savings Fund - Hybrid - Debt Plan Point 1 Upper mid AUM (₹2,145 Cr). Lower mid AUM (₹2,132 Cr). Bottom quartile AUM (₹166 Cr). Highest AUM (₹6,660 Cr). Bottom quartile AUM (₹151 Cr). Point 2 Oldest track record among peers (14 yrs). Established history (14+ yrs). Established history (14+ yrs). Established history (10+ yrs). Established history (10+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 4★ (lower mid). Not Rated. Not Rated. Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 10.93% (lower mid). 5Y return: 11.27% (upper mid). 5Y return: 6.32% (bottom quartile). 5Y return: 13.14% (top quartile). 5Y return: 6.50% (bottom quartile). Point 6 3Y return: 13.24% (upper mid). 3Y return: 14.27% (top quartile). 3Y return: 7.72% (bottom quartile). 3Y return: 10.87% (lower mid). 3Y return: 6.62% (bottom quartile). Point 7 1Y return: 1.59% (upper mid). 1Y return: 0.61% (lower mid). 1Y return: 2.46% (top quartile). 1Y return: -5.88% (bottom quartile). 1Y return: 0.57% (bottom quartile). Point 8 1M return: 3.39% (upper mid). 1M return: 3.46% (top quartile). 1M return: 2.31% (bottom quartile). 1M return: 3.35% (lower mid). 1M return: 1.97% (bottom quartile). Point 9 Alpha: 0.00 (upper mid). Alpha: 2.66 (top quartile). Alpha: 0.00 (lower mid). Alpha: -7.14 (bottom quartile). Alpha: 0.00 (bottom quartile). Point 10 Sharpe: -0.08 (upper mid). Sharpe: -0.06 (top quartile). Sharpe: -0.53 (lower mid). Sharpe: -0.67 (bottom quartile). Sharpe: -1.24 (bottom quartile). Tata Retirement Savings Fund-Moderate
Tata Retirement Savings Fund - Progressive
Tata Retirement Savings Fund - Conservative
HDFC Retirement Savings Fund - Equity Plan
HDFC Retirement Savings Fund - Hybrid - Debt Plan
Best Retirement Mutual Fund- As per Risk Appetite
Investors who want to invest in equity, debt or Balanced Fund, can invest in these funds as per risk appetite.
Best Retirement Mutual Funds for Aggressive Investors
These funds are Equity Funds that invest in the stocks of companies. Equity funds are considered to be a good option for a long-term investment and for those who are ready to take a high-risk in mutual funds. Ideally, investors who fall in the age bracket of 25-40 years and are willing to invest for at least 10-15 years can invest in these schemes.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Sub Cat. DSP Natural Resources and New Energy Fund Growth ₹105.025
↓ -0.01 ₹2,457 0.8 4.6 16.9 21.1 15.5 17.5 Sectoral Aditya Birla Sun Life Small Cap Fund Growth ₹95.1507
↓ -0.12 ₹5,453 21.8 12.1 9 17 13.5 -3.7 Small Cap Franklin Build India Fund Growth ₹148.323
↑ 0.65 ₹3,160 9.7 2.9 3.4 22.5 21.1 3.7 Sectoral Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹64.18
↑ 0.60 ₹3,466 14.9 -0.6 3.1 12.6 12.4 17.5 Sectoral SBI Small Cap Fund Growth ₹179.04
↓ -0.31 ₹37,395 18.6 6.2 2.3 13.3 14.2 -4.9 Small Cap Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Jun 26 Research Highlights & Commentary of 5 Funds showcased
Commentary DSP Natural Resources and New Energy Fund Aditya Birla Sun Life Small Cap Fund Franklin Build India Fund Aditya Birla Sun Life Banking And Financial Services Fund SBI Small Cap Fund Point 1 Bottom quartile AUM (₹2,457 Cr). Upper mid AUM (₹5,453 Cr). Bottom quartile AUM (₹3,160 Cr). Lower mid AUM (₹3,466 Cr). Highest AUM (₹37,395 Cr). Point 2 Established history (18+ yrs). Oldest track record among peers (19 yrs). Established history (16+ yrs). Established history (12+ yrs). Established history (16+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: High. Risk profile: Moderately High. Risk profile: High. Risk profile: High. Risk profile: Moderately High. Point 5 5Y return: 15.47% (upper mid). 5Y return: 13.52% (bottom quartile). 5Y return: 21.11% (top quartile). 5Y return: 12.38% (bottom quartile). 5Y return: 14.25% (lower mid). Point 6 3Y return: 21.15% (upper mid). 3Y return: 16.97% (lower mid). 3Y return: 22.50% (top quartile). 3Y return: 12.57% (bottom quartile). 3Y return: 13.34% (bottom quartile). Point 7 1Y return: 16.94% (top quartile). 1Y return: 8.98% (upper mid). 1Y return: 3.35% (lower mid). 1Y return: 3.08% (bottom quartile). 1Y return: 2.27% (bottom quartile). Point 8 Alpha: 0.00 (upper mid). Alpha: 0.00 (lower mid). Alpha: 0.00 (bottom quartile). Alpha: 3.78 (top quartile). Alpha: 0.00 (bottom quartile). Point 9 Sharpe: 1.33 (top quartile). Sharpe: 0.23 (upper mid). Sharpe: 0.01 (lower mid). Sharpe: -0.15 (bottom quartile). Sharpe: -0.22 (bottom quartile). Point 10 Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.28 (top quartile). Information ratio: 0.00 (bottom quartile). DSP Natural Resources and New Energy Fund
Aditya Birla Sun Life Small Cap Fund
Franklin Build India Fund
Aditya Birla Sun Life Banking And Financial Services Fund
SBI Small Cap Fund
Best Retirement Mutual Funds for Moderate Investors
These funds are suitable for investors who fall in the age bracket of 41-50 years and are willing to invest for at least 5-10 years more. These are hybrid funds, i.e., a mix of debt and equity funds. These are a good option for investors who want to earn long-term returns via equity, as well as regular income via debt securities.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Sub Cat. Edelweiss Arbitrage Fund Growth ₹20.5314
↑ 0.03 ₹14,862 1.6 3 5.9 6.9 6.1 6.3 Arbitrage SBI Debt Hybrid Fund Growth ₹76.4311
↑ 0.08 ₹9,793 5.3 2.7 4.9 8.9 8.9 6.7 Hybrid Debt Aditya Birla Sun Life Regular Savings Fund Growth ₹69.9775
↑ 0.05 ₹1,475 4.3 2.1 4.3 8.4 8 7.1 Hybrid Debt ICICI Prudential MIP 25 Growth ₹78.96
↑ 0.13 ₹3,302 4.3 1.4 4.3 9 8.6 7.9 Hybrid Debt Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Jul 26 Research Highlights & Commentary of 4 Funds showcased
Commentary Edelweiss Arbitrage Fund SBI Debt Hybrid Fund Aditya Birla Sun Life Regular Savings Fund ICICI Prudential MIP 25 Point 1 Highest AUM (₹14,862 Cr). Upper mid AUM (₹9,793 Cr). Bottom quartile AUM (₹1,475 Cr). Lower mid AUM (₹3,302 Cr). Point 2 Established history (12+ yrs). Oldest track record among peers (25 yrs). Established history (22+ yrs). Established history (22+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Moderate. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 6.06% (bottom quartile). 5Y return: 8.91% (top quartile). 5Y return: 8.01% (lower mid). 5Y return: 8.56% (upper mid). Point 6 3Y return: 6.89% (bottom quartile). 3Y return: 8.93% (upper mid). 3Y return: 8.37% (lower mid). 3Y return: 9.05% (top quartile). Point 7 1Y return: 5.89% (top quartile). 1Y return: 4.92% (upper mid). 1Y return: 4.31% (lower mid). 1Y return: 4.28% (bottom quartile). Point 8 1M return: 0.75% (bottom quartile). 1M return: 1.74% (upper mid). 1M return: 1.95% (top quartile). 1M return: 1.68% (lower mid). Point 9 Alpha: -0.82 (bottom quartile). Alpha: 0.00 (upper mid). Alpha: 1.62 (top quartile). Alpha: 0.00 (lower mid). Point 10 Sharpe: -0.40 (upper mid). Sharpe: -0.22 (top quartile). Sharpe: -0.43 (lower mid). Sharpe: -0.46 (bottom quartile). Edelweiss Arbitrage Fund
SBI Debt Hybrid Fund
Aditya Birla Sun Life Regular Savings Fund
ICICI Prudential MIP 25
Best Retirement Mutual Funds for Conservative Investors
Investors who are above 50 years of age would prefer investing in the conservative scheme, i.e., funds which carry a low level of risk. These are debt scheme that offers stable returns.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Sub Cat. PGIM India Low Duration Fund Growth ₹26.0337
↑ 0.01 ₹104 1.5 3.3 6.3 4.5 1.3 Low Duration Baroda Pioneer Treasury Advantage Fund Growth ₹1,600.39
↑ 0.30 ₹28 0.7 1.2 3.7 -9.5 -3.2 Low Duration Aditya Birla Sun Life Corporate Bond Fund Growth ₹119.259
↑ 0.01 ₹24,390 3 2.8 5.2 7.4 6.5 7.4 Corporate Bond Aditya Birla Sun Life Savings Fund Growth ₹584.265
↑ 0.44 ₹19,611 1.9 3.2 6.4 7.3 6.5 7.4 Ultrashort Bond HDFC Corporate Bond Fund Growth ₹34.3506
↑ 0.00 ₹31,067 3 2.7 5.1 7.3 6.3 7.3 Corporate Bond Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23 Research Highlights & Commentary of 5 Funds showcased
Commentary PGIM India Low Duration Fund Baroda Pioneer Treasury Advantage Fund Aditya Birla Sun Life Corporate Bond Fund Aditya Birla Sun Life Savings Fund HDFC Corporate Bond Fund Point 1 Bottom quartile AUM (₹104 Cr). Bottom quartile AUM (₹28 Cr). Upper mid AUM (₹24,390 Cr). Lower mid AUM (₹19,611 Cr). Highest AUM (₹31,067 Cr). Point 2 Established history (19+ yrs). Established history (17+ yrs). Oldest track record among peers (29 yrs). Established history (23+ yrs). Established history (16+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 1Y return: 6.30% (upper mid). 1Y return: 3.74% (bottom quartile). 1Y return: 5.20% (lower mid). 1Y return: 6.38% (top quartile). 1Y return: 5.11% (bottom quartile). Point 6 1M return: 0.47% (bottom quartile). 1M return: 0.21% (bottom quartile). 1M return: 2.19% (upper mid). 1M return: 1.03% (lower mid). 1M return: 2.30% (top quartile). Point 7 Sharpe: -1.66 (bottom quartile). Sharpe: 0.37 (upper mid). Sharpe: -1.30 (lower mid). Sharpe: 0.52 (top quartile). Sharpe: -1.52 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 7.34% (bottom quartile). Yield to maturity (debt): 4.07% (bottom quartile). Yield to maturity (debt): 7.72% (lower mid). Yield to maturity (debt): 7.98% (top quartile). Yield to maturity (debt): 7.79% (upper mid). Point 10 Modified duration: 0.53 yrs (upper mid). Modified duration: 0.63 yrs (lower mid). Modified duration: 3.94 yrs (bottom quartile). Modified duration: 0.46 yrs (top quartile). Modified duration: 4.05 yrs (bottom quartile). PGIM India Low Duration Fund
Baroda Pioneer Treasury Advantage Fund
Aditya Birla Sun Life Corporate Bond Fund
Aditya Birla Sun Life Savings Fund
HDFC Corporate Bond Fund
SIP Investing for Retirement Planning
A Systematic Investment plan (SIP) can be the key to your happy retirement life. Ideally, when you plan to invest for a long-term, SIP is considered to be the most efficient way. SIP is a process of wealth creation where a small amount of money is invested over regular intervals of time i.e., monthly /quarterly. And this investment is invested in the stock market generates returns over time. The amount required for starting a SIP is as low as INR 500, thus making SIP’s a great tool for smart investments, where one can start investing a small amount from a young age.
The two major benefits of SIPs are— Power of Compounding and rupee cost averaging. Rupee cost averaging helps an individual to average out the cost of an asset purchase. In a systematic investing, the purchase of units is done over a long period and these are spread out equally over monthly intervals (usually). Due to the investment being spread out over time, the investment is made into the stock market at different price points giving the investor the benefit of averaging cost.
In the case of compound interest, the interest amount is added to the principal, and interest is calculated on the new principal (old principal plus gains). This process continues every time. Since the mutual funds in the SIP are in instalments, they are compounded, which adds more to the initially invested sum.
How to Invest in Retirement Mutual Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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