Mutual Funds have become one of the most popular investment vehicles due to their ability to provide investors with diversification across various asset classes without the hassle of managing individual investments. Moreover, they offer investors access to investments they might not have had access to otherwise.
Contrary to popular belief, Mutual Funds are not inherently too risky for senior citizens. In fact, there are Mutual Funds that cater specifically to senior citizens’ needs and risk tolerance. We have put together a comprehensive list of the best Mutual Fund investment options for senior citizens in 2023 in this blog.
When considering investing in a Mutual Fund, there are several important factors that investors should carefully consider before making a decision.
These factors include:
Financial Aims:
It’s important to have a clear financial objective when investing in a Mutual Fund. Determine your investment goals and choose a fund category that aligns with your objectives and has a suitable time frame according to your needs.
Amount of Cash Needed:
If you anticipate needing cash soon, it’s best to invest in a money market or liquid funds that provide easy liquidity. For longer-term investments, an Equity Mutual Fund is a good option.
Risk Horizon:
Different Mutual Funds have varying levels of risk and investors must determine their own risk tolerance. If you’re a risk-averse investor, invest in a more stable Gold Fund or a Debt Fund. For those willing to assume some risk, an Equity Fund is a wise choice. Hybrid Funds are best for long-term investing at medium risk.
Fees for a Fund:
: Before comparing multiple Mutual Funds, make sure to check a fund’s entry and exit load, expense ratio, dividend policy, transaction charges, and other variables that may impact the overall cost of the investment. In addition to a fund’s historical returns, these factors are also significant and should be carefully considered before making an investment decision
In this performance overview, we will be discussing the best investment plans for senior citizens in the mutual fund category.
Below are the top five Mutual Fund options for senior citizens and their key features.
ICICI Prudential Balanced Advantage Direct-Growth:
ICICI Prudential Balanced Advantage Direct-Growth is a Hybrid Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. The scheme aims to provide capital appreciation and income distribution by using equity derivatives strategies, arbitrage opportunities, and pure equity investments. This scheme has been considered one of the best Mutual Fund options.
Axis BlueChip Fund Direct Plan-Growth:
Axis BlueChip Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund. The scheme aims to generate long-term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity-related instruments of large-cap companies. This scheme is suitable for investors aiming for long-term capital appreciation with an investment horizon of more than five years.
ICICI Prudential Ultra Short-Term Fund Direct-Growth:
ICICI Prudential Ultra Short-Term Fund Direct-Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. The scheme seeks to generate income through investments in a range of debt and money market instruments. This scheme is rated Moderate risk and has a minimum SIP investment of ₹1,000 and a minimum lump sum investment of ₹5,000.
HDFC Short-Term Debt Fund Direct Plan-Growth:
HDFC Short Term Debt Fund Direct Plan-Growth is a Debt Mutual Fund Scheme launched by HDFC Mutual Fund. The scheme aims to generate regular income through investment in debt securities and money market instruments. This scheme is rated Moderate risk and has a minimum SIP investment of ₹300 and a minimum lump sum investment of ₹5,000.
HDFC Retirement Savings Fund Equity Plan Direct-Growth:
: HDFC Retirement Savings Fund Equity Plan Direct-Growth is a Solution Oriented Mutual Fund Scheme launched by HDFC Mutual Fund. The scheme aims to provide long-term capital appreciation/income by investing in a mix of equity and debt instruments to help investors meet their retirement goals. This scheme is rated Very High Risk and has a minimum SIP investment of ₹300 and a minimum lump sum investment of ₹5,000.
Conclusion
Mutual Funds serve as a popular investment option for individuals who wish to invest in equities and debt securities. By pooling the funds of many investors who have similar goals, Mutual Funds can provide investors with access to a diversified portfolio of stocks and bonds, which can help manage risk while maximizing returns.