Outlook Money
Inflation depletes money value; however, mutual funds have the potential to beat price rises.
Mutual funds provide numerous scheme options for retirement planning; choose the one that fulfils your requirements.
You can invest in an equity-oriented fund that allocates a large portion of assets in equity.
It allocates funds to low-risk assets that offer modest returns, enabling individuals to build their desired retirement corpus.
Choose equity, hybrid or debt funds depending on your risk appetite, as risks vary from one asset class to another.
Opt for equity or hybrid funds for long-term investments; shift towards debt funds as retirement approaches.
A systematic withdrawal plan allows you to withdraw a fixed amount at regular intervals from the investments made in the MF scheme.
Retirement funds often have a lock-in period of up to 5 years or until retirement age, ensuring investing discipline to achieve goals.
Compiled By Himani Verma