A retirement fund’s investments typically include a broad portfolio of stocks, bonds, mutual funds, and other assets. The primary goal is to gradually accumulate wealth; ensuring individuals have a sizeable nest egg to support a comfortable and financially secure retirement. Retirement mutual funds are focused funds for the golden years with a lock-in of at least five years or the retirement age, whichever is earlier, as per the Securities and Exchange Board of India’s (Sebi) scheme guidelines. Those nearing retirement can explore this option, which offers liquidity and a tax benefit of up to Rs 1.50 lakh under Section 80C of the Income-tax Act, 1961.
As of November 30, 2023, there were 27 retirement mutual funds, with Rs 22,680.43 crore of net assets under management (AUM), held by only 11 asset management companies (AMCs), including UTI, Franklin, SBI, HDFC, and ICICI offer retirement schemes.
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