Mutual Funds for Senior Citizens
Mutual fund investing might be a fantastic choice for seniors searching for a reliable income after retirement. The best mutual funds for seniors in 2023 will include funds that offer income, bonds, dividends, balanced funds, and index funds. Considerations for older citizens' mutual fund selection include their financial needs, risk tolerance, and investing goals.
Senior Citizens Mutual Fund Types in India in 2023:
- Deficit funds
Debt funds are a wonderful choice for senior individuals searching for a reliable source of income because they invest in fixed-income instruments like bonds and government securities. The HDFC Corporate Bond Fund and the ICICI Prudential Corporate Bond Fund are the most well-liked debt funds in India.
- Plans for monthly income
A particular kind of debt fund called MIPs makes investments in a mix of fixed-income securities and stocks. They are a popular choice for senior adults because they are made to deliver a consistent monthly income. Franklin India Monthly Income Plan and Kotak Monthly Income Plan are two common MIPs for older folks in India.
- Bond Funds
Gilt funds are a low-risk choice for senior adults because they invest in government assets. They can offer a reliable source of income but are exposed to interest rate risk. UTI Gilt Fund and SBI Magnum Gilt Fund are two prominent gilt funds in India for senior persons.
- Money Market Funds
Stocks of well-established businesses with a capitalization of over Rs. large-cap funds purchase 10,000 crores. These funds are a wonderful option for senior adults since they can offer stability and the possibility of long-term growth. In India, the HDFC Top 100 Fund and Reliance Large Cap Fund are two of the most well-liked large-cap funds for seniors.
- Equilibrium Funds
Investing in a mix of equities and bonds through balanced funds offers seniors the chance for income growth. These investments can give a portfolio a more steady return while lowering overall risk. In India, the HDFC Balanced Fund and the ICICI Prudential Balanced Advantage Fund are well-liked balanced funds.Top mutual funds for seniors:
- Axis BlueChip Fund Direct Plan-Growth
An excellent example in the list of mutual funds for seniors is Axis BlueChip Fund Direct Plan-Growth. It debuted on September 4, 2009. It is a mutual fund equity strategy to produce long-term capital growth. This mutual fund invests in large-cap businesses' stock and equity-related instruments in a diversified portfolio.
The net asset value of this mutual fund is Rs. 48.5. It has a fund size of Rs. 35822.38 crores and an expense ratio of 0.55%. This fund's average annual returns rate is 15.07%, and its 3-year growth rate is 13.36%. The first lump sum investment is Rs. 500, and the minimum SIP amount is Rs. 100. A suitable investment choice for those wishing to make a long-term investment (with an investment horizon of more than five years), this mutual fund also has no lock-in period.
- ICIC Prudential Ultra Short-Term Fund Direct-Growth
The ICIC Prudential Ultra Short-Term Fund Direct-Growth, which entered the market on October 12, is a debt fund with a medium level of risk. The main goal of this fund is to build wealth by acquiring various debt and money market securities.
With a starting SIP of Rs. 1,000 and a minimum investment of Rs. 5,000, you may invest in this mutual fund. Assets under control total Rs. 12,245 crore, with a 3-year annual growth rate of 5.69%. Its average yearly returns are 8.13%, and its net asset value is Rs. 24.49. Additionally, the expense ratio for this mutual fund is 0.39%. The Reserve Bank of India, National Bank for Agriculture & Rural Development, HDFC Bank Ltd., and Canara Bank make up the top 5 holdings of this mutual fund.
- ICICI Prudential Direct-Growth
The ICICI Prudential Balanced Advantage Direct-Growth is a hybrid mutual fund introduced on October 12, 1993. By utilizing pure equity investments, arbitrage opportunities, and equity derivative techniques, it seeks to raise capital for its investors and distribute income. This has an asset value of Rs. 56.59 and an expense ratio of 0.92% as of the time of writing. Currently, this fund is managing assets of Rs. 42,989 crores. This mutual fund's average annual return rate and 3-year growth rate are 12.81% and 13.20%, respectively.
- HDFC Short-Term Debt Fund Direct Plan-Growth
On December 10, 1999, the HDFC Short-Term Debt Fund Direct Plan-Growth hit the market. It is a moderately risky mutual fund that uses debt and money market instruments as part of its strategy to increase capital. You have two options for your initial investment in this mutual fund: an Rs. 300 minimum SIP contribution or an Rs. 5,000 lump sum. This mutual fund's 3-year annual growth rate is 6.60%, and its current net asset value is Rs. 26.55.
There are a lot of schemes and programs for senior citizens. They can choose their mutual fund investment plans accordingly. In the above article, we have shared the best information about mutual fund investments for seniors. If you want to know more about senior citizens' mutual funds, this article is for you.