Prior to investing in a mutual fund scheme, investors often examine the past returns of a scheme. This gives an indication of the scheme’s future performance vis-a-vis other funds in the same category.
Notably, investors are supposed to examine – besides historical returns – other factors as well. These include the reputation of the fund house, category of scheme and overall macro economic factors.
Top performing retirement mutual funds
Here we list out the best performing retirement mutual funds which have delivered more than 15 percent annualised returns in the past five years.
Those who are not aware retirement funds are solution-oriented funds which have a lock-in of at least five years or retirement age whichever is earlier. These are also known as solution-oriented funds. Both HDFC and ICICI Mutual funds run different retirement plans – one under equity and one hybrid.
These are HDFC Retirement Savings Fund (Equity Plan), HDFC Retirement Savings Fund (Hybrid Equity Plan), ICICI Prudential Retirement Fund (Hybrid Aggressive Plan), ICICI Prudential Retirement Fund (Pure Equity Plan) and Nippon India Retirement Fund (Wealth Creation Scheme).
As the table above shows, ICICI Prudential’s pure equity plan has delivered 21.90 percent annualised return in the past five years. HDFC’s equity plan has given 21.53 percent return in the past five years.
Based on the size of assets, the largest schemes are HDFC Retirement Savings Fund (equity plan) with AUM of ₹5,564 crore and Nippon India Retirement Fund (wealth creation scheme) with assets amounting to ₹2,849 crore.
Notably, past returns of a scheme do not guarantee future returns. This means just because a mutual fund scheme has given good returns in the past, it does not necessarily mean it will continue to give similar performance in the future as well.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
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