A Mutual Fund That Meet Your Retirement Needs

Retirement planning is different for each person. It depends on a lot of factors such as income needs, an alternative source of income, family health history etc. Planning right for your retirement is an essential long-term goal as it will allow you to make the most of it and help you fulfil your dreams. With numerous mutual fund schemes available on the market, it can be tedious to finalize on ones that might suit your retirement needs. These strategies might help you identify some mutual funds that might deliver on your vision for your retirement.

If you wish to build a decent corpus through solution oriented equity investments for your retirement fund, here are a few tips to help you find a suitable mutual fund as per your need:

1. Invest in a mutual fund offered by an established AMC

Now, this is as necessary you entrust your hard earned money with an established fund house. One of the prime reasons behind a mutual fund’s positive performance is the fund management and the Asset Management Company (AMC), which form its backbone. Hence, consider investing in a mutual fund scheme offered by AMCs who have a proven track record.

2. Invest in funds that have a proven track record

New investors seeking long term capital appreciation might end up investing in a scheme that is currently doing well. But honestly speaking, this isn’t actually a wiser way of investing because the mutual fund scheme that is presently performing might not continue its positive streak and deliver similar results in future. Hence, what investors need to understand here is that they need to do a little bit more research and analyze how the fund has performed in the past. If the fund has managed to give low but consistent returns over a long period, this means the fund is in the hands of good management, and there are chances of you gaining some profits as well. Remember that it is not always about making higher profits; consistency is essential. Hence, don’t get tempted by looking at a scheme’s current performance and make your investment decision.

3. Do not invest in too many mutual funds

Bear in mind that diversification means reducing exposure of risk to anyone asset. But this doesn’t mean flooding your mutual fund portfolio it with just one type of the scheme. Investors should try and avoid investing in a new mutual fund every now and then. This is because you might end up investing in multiple mutual funds and later find it difficult to manage and track them regularly. Try constraining your mutual fund investments to one or two maximum. Invest in mutual funds that have been consistent with their performance rather than investing in those are gainers of the past year or two.

4. Find out whether you want to go with the growth option or IDCW option

Mutual fund schemes are available to investors in two options – growth and IDCW. Which option should you go for? Well, that totally depends on who you are what your financial needs are. Investors depending on mutual, a regular income, might feel opting for IDCW option. However, investors opting for IDCW might lose out on benefiting from the power of compounding. On the other hand, investors seeking long term capital appreciation might find growth option a bit more favourable for them. Investors going with growth option usually stand a chance of benefiting from the power of compounding.

We hope that the above apprehended pointers help you in narrowing down to a suitable mutual fund which might help you build a decent retirement corpus. Invest in a retirement fund which holds the potential to offer you some decent returns. And if you have made up your mind, you can consider investing in Axis Retirement Fund. Axis Retirement Fund is an open-ended retirement fund that unambiguously focuses on investors who are hoping to build a corpus that can allow them financial stability and security during their post-retirement life.

Axis Retirement Fund offers three investment plans -

Axis Retirement Fund - Aggressive Plan: This plan can be opted by investors who are seeking capital appreciation with a long term investment objective. Here investments are predominantly made in equity and equity-related instruments as well as debt, money market instruments, Gold ETF's and units of REITs and InvIT’s. Investors who plan to opt for the Aggressive Plan can expect equity exposure anywhere from 65% to 80%.

Axis Retirement Fund - Dynamic Plan: This investment plan is brought into effect with a dual objective. Axis Retirement Fund - Dynamic Plan can generate capital appreciation by investing in equity and equity-related securities as well as generate income by investing in debt and money market securities. It manages to do this while attempting to manage risk from the market through active asset allocation. The Investment Plan may also invest in units of Gold ETF or units of REITs & InvITs for income generation.

Axis Retirement Fund - Conservative Plan: This investment plan by Axis Mutual Funds hopes to generate regular income through investments majorly in debt and money market instruments and to generate long term capital appreciation by investing a certain portion of the portfolio in equity and equity-related securities. Axis Retirement Fund - Conservative Plan may also invest in units of Gold ETF or units of REITs & InvITs for wealth creation.

Investors should bear in mind that the above plans differ in the varying degrees of equity and debt allocation and are suited for investors depending on their appetite for risk.

Axis Retirement Fund is a solution-oriented product aimed at building a wealthy retirement corpus for investors. It is better that you invest early and let your money do the hard work for you.

Axis Retirement Fund

(An open-ended retirement solution oriented scheme

having a lock-in of 5 years or till retirement age (whichever is earlier)).

Axis Retirement Fund - Aggressive Plan
This product is suitable for investors who are seeking*:
Capital appreciation over long term Investments primarily in equity and equity related instruments.
Axis Retirement Fund - Dynamic Plan
This product is suitable for investors who are seeking*:
Capital appreciation and income generation over long term. Investment in equity and equity related instruments as well as debt and money market instruments while managing risk through active asset allocation.
Axis Retirement Fund - Conservative Plan
This product is suitable for investors who are seeking*:
Capital appreciation & income generation over long term. Investments in debt and money market instruments as well as equity and equity related instruments.

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.