Post Retirement Funds: Preferred Investment Of People!

Indians and savings go hand in hand. We prefer savings keeping the future needs in mind. Irrespective of age Indians prefer savings and opt for financial planning. A new report shed light on the preferences of Indians as the post-retirement funds are on a massive rise.

ICRA Analytics report said that there is a growing interest among people for the retirement mutual fund AUM. In the last five years the AUM saw a growth of 256 percent in the past five years.

The report said that in July 2019 the funds stood at Rs 8395 crore which went to Rs 29,903 crore in July 2024. In just five years the funds recorded growth of 256 per cent. During the same period, the accounts increased by 17.44 percent.

What sets retirement mutual funds different is that the scheme works in a way that people can have a post-retirement life. These funds will be invited in equity and debt. These funds will come with a lock-in period for up to five years or till the retirement of the investors.

With this, the investors cannot take back the money that went into the account. The fruits of the funds can be used for the expenses in the post-retirement life of the investors.

Looking at the average returns of these funds it is 26.2 percent annually and the same goes to 12.97 percent for three years and 14.09 percent for five years. Due to high returns investors prefer the scheme.