Important Tactics of Retirement Planning
Retirement, a word that makes dreams and fear float in the eyes of people. Dreams, that one wishes to fulfill after one retires and fear of how things will be managed financially without earning source. The most common answer that blinks in the minds of people is PF and pension facility. There are a number of citizens who are living on the same but, what if the amount is too small as per the current inflation or if one doesn’t have such facility. This is where retirement funds step in.
Wondering what a retirement fund is? Retirement fund or plan is a mutual fund scheme that is specially designed keeping retirement in focus and invests across instruments. There are ample schemes present in the market from which one may select the right one for their portfolio. There are certain points which an investor should consider while planning for retirement and opting a scheme. Let’s quickly go through the points that have been shortlisted by the expert of MySIPonline.
Tactics to be Applied by Retirement Planners
Below points will help you plan for your retirement in an easy way and will open the doors for money inflow so that you can live these days with ease and peace.
- Ascertain the Target Corpus
Selecting the target corpus will require you to make some calculations, i.e., you need to calculate your current expenditure and inflate it according to the appropriate inflation factor to lead to the financial requirement at time of your retirement. Now, let’s move to the next step. - Determine the Age
Yes, you need to calculate the years left in retirement by deducting your present age from the retirement age. Assuming your age to be 25 years and retirement age to be 60 years, now the time left for saving would be 60 less 25 which is 35 years. As you now know the years left in retirement you can now plan accordingly. - Plan Early to Accumulate
Better Planning early is always considered better as you have more time in hand to save and invest rather than trying to accumulate money in hurry. If you are investing in SIP plans, then you will be greatly benefited by saving early as a result of its compounding feature. - Set the Risk Appetite Level
The next step is to find out the risk that you are ready to take which depends on a number of factors such as time left in retirement, requirement of financial security level, psychological factors and so on. - Finalize the Mode of Investment
Investment in mutual funds can be done both through lump sum or SIP mode of investment. SIP is preferable investment option due to power of compounding and rupee cost averaging that helps an investor to earn more and face the market fluctuations. It is recommended that one should switch to debt scheme once you come near the age of retirement.
All these factors will help you in finalizing the right investment option that you should opt for and the investment products that must be added to your portfolio. For example, if you are capable of taking high risk, then you may choose an equity scheme, if you wish to save slowly, then you may select the SIP option, and in case you have lot of years left in retirement, then you may plan accordingly. No matter what the plan, at the end it should be capable of helping you fulfill your retirement goals.
Top Retirement Plans to Invest in
Here is the list of top retirement plans among which you may select the best one to invest in for your retirement. These best retirement plans have been shortlisted after analyzing them on the basis of a number of parameters. Below table showcases these five funds along with there date of launch, trailing returns, AUM, and expense ratio.
| Fund | Launch | 1-Year Returns | 3-Year Returns | 5-Year Returns | AUM (Cr.) | Expense Ratio (%) |
|---|---|---|---|---|---|---|
| Tata Retirement Savings Fund - Progressive Plan (G) | Nov-11 | -7.39 | 11.74 | 16.93 | 499 | 2.59 |
| Tata Retirement Savings Fund - Moderate Plan (G) | Nov-11 | -4.95 | 10.87 | 17.92 | 882 | 2.30 |
| Reliance Retirement Fund - Wealth Creation Scheme (G) | Feb-15 | -8.46 | 7.25 | - | 1316 | 2.24 |
| Franklin India Pension Fund (G) | Mar-97 | -0.80 | 6.18 | 11.23 | 425 | 2.33 |
| HDFC Retirement Savings Fund - Hybrid Equity Plan (G) | Feb-16 | -1.16 | - | - | 198 | 2.89 |
| *As on September 30th, 2018 | ||||||
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The Final Note
Hope you will find these tactics helpful in preparing for your retirement’s financial base. Although, there are multiple mutual fund schemes present in the market, select the best only after carefully analyzing them on the basis of their past performance, risk management, investment strategies, fund managers, asset allocation, etc. Don’t worry about the investment procedure, as at MySIPonline, you can invest online by selecting the best scheme among many under the same roof. The investment procedure is really simple here and the experts are always available to help you out. All you need to do is connect with them and in addition to this, if you have any concerns regarding regular funds, then you may also post the same here.
Must Read:
- How to make Rs. 5 crore retirement corpus in 20 years?
- Best retirement funds to invest in India
- How to ensure financial fitness for the time of retirement?
- Parameters to consider while selecting top funds for retirement
Invest in the Best Mutual Funds
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
Best Funds
| Top funds | 1M Return | 6M Return | 1Y Return | 3Y Return | 5Y Return |
|
|
|---|---|---|---|---|---|---|---|
| Tata Retirement Savings Fund - Progressive Plan -Regular Plan-Growth Option | 1.36% | 22.91% | 37.89% | 16.35% | 19.08% | Invest | |
| Tata Retirement Savings Fund- Moderate Plan-Regular Plan-Growth Option | 1.31% | 20.01% | 31.71% | 15.14% | 17.6% | Invest | |
| Franklin India Pension Plan-Growth | 1.06% | 9.5% | 20.34% | 10.49% | 10.71% | Invest | |
| Nippon India Retirement Fund- Wealth Creation Scheme- Growth Plan - Growth Option | 1.73% | 20.1% | 43.18% | 20.77% | 19.57% | Invest | |
| HDFC Retirement Savings Fund - Hybrid-Equity Plan - Growth Option | 1.24% | 12.99% | 27.4% | 16.31% | 18.92% | Invest |