Expert Opinion

Investing in Mutual Funds for Retirement

August 25, 2020

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If you’re searching for the best mutual funds for retirement, then you’re on the right track. Retirement is something we all dream of but not everyone plans for it. By considering mutual funds as a tool that can enable a happy retirement, you’re already ahead of most others.

As pensions become a rare thing, it is now up to individuals to plan for their retirement and ensure they have enough money saved up for their future. In this story, we will talk about retirement and how mutual funds are one of the best measures you can take to secure your future.

How do Mutual Funds Become Part Of Your Retirement Plan?

To retire you need to set aside enough money to help you cruise through a few decades of your life. How much money you need to retire depends completely on when you plan to retire, what kind of lifestyle you aspire to have post-retirement, whether you have any secondary sources of income and if you wish to continue working in any capacity in the future.

For example: If you consider retiring at the age of 40 you will need to save for at least the next 35 to 40 years. This will include not just your cost of living but also the money you will need to spend on medical bills, travel etc. as well. Therefore mutual funds will be a part of the many measures you will take as part of your retirement plan.

Once you have an emergency fund, life insurance & health insurance, the next leg of your retirement planning will be to ensure you have a big nest egg thanks to a healthy mutual fund portfolio. You can contact a Cube Wealth Coach to get free advice on this topic.

You can also use our free mutual funds analysis tool to check how good your current financial portfolio is.

Try Our Free MF Analysis Tool

Expected Risks & Returns From Mutual Funds For Retirement

When you invest in Mutual Funds for retirement as a goal you will focus on the long term. In such a scenario, you are less concerned about which fund will reap the most returns fast. Instead, you focus on the funds that have consistently performed well and given investors healthy returns. You may choose to invest in one or more high-risk funds but it is advisable to consult a wealth advisor first. At the end of the day, the decision will depend on your risk appetite, goals and investment time frame.

Examples of Mutual Funds for Retirement

Assuming, you want to invest in Mutual Funds with high-medium risk for long term, you can invest in:

Mutual Funds Aggressive – Invest up to 100% in equity.

(Note – This is only for reference purpose, as Mutual Fund categories & funds would vary based on many external factors. To get a detailed guide, speak to a wealth coach at Cube)

Mutual Fund

Franklin India Prima Fund

Kotak Emerging Equity Fund

Motilal Oswal Midcap 30 Fund

ICICI Prudential Smallcap Fund

Kotak Small Cup Fund

See Investment Options

Benefits Of Investing In Mutual Funds For Retirement

The key benefits of investing in mutual funds for retirement are:

  1. Consistently good performance of equities on the Sensex
  2. Freedom to invest in small amounts
  3. The option of investing in liquid funds
  4. Freedom to choose risk-return ratio based on fund type and time frame
  5. Long term saving and wealth creation
  6. The benefit of compound interest
  7. ELSS and tax-saving fund options
  8. Transparent terms and conditions for those willing to read the fine print

To sum up, mutual funds are a great means to plan and secure financial health for your retirement. However, we highly recommend you consult a Cube Wealth Coach before you invest your hard-earned money into any financial product. What works for your friends and family may not be the right fit for your financial portfolio. So, Download The Cube Wealth App before you start investing.

Start Investing Now

In case you are still not too sure, you can watch this episode of The Cube Wealth Show which explains How to Choose Mutual Funds. We do not recommend one to do so on their own.

Rishabh P Nair
Rishabh P Nair is the Head Of Brand Content at Cube Wealth. Rishabh has been weaving stories for over 10 years and prides himself on building brands with a strong identity. Besides building content for multiple start-ups, he has written scripts for YouTube videos, digital ads, short films, TV Shows and films.

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