Top Equity Retirement Funds In India: Rs 14 Lakh Investment Grows To Rs 50.8 Lakh In Five Years

Planning for retirement is a priority for many individuals, and choosing the right investment vehicle can make a significant difference to one’s financial security. Investors often evaluate options based on risk appetite, opting for safer instruments like fixed deposits or post office schemes, or exploring higher-growth avenues such as mutual funds. According to experts, equity retirement funds , in particular, have delivered impressive returns over a five-year horizon. Here, we analyse the performance of the leading five equity retirement funds and the potential growth of a Rs 14 lakh investment.

Understanding Equity Retirement Funds

Equity retirement funds primarily invest about 65 per cent of their portfolio in stocks. These funds generally have a lock-in period of at least five years or continue until the investor reaches retirement age, whichever comes first. Experts say this structure allows investors to benefit from long-term market growth while providing a structured approach to retirement savings. The growth potential of these funds, coupled with disciplined investing, has made them a preferred choice among long-term investors seeking wealth creation.

ICICI Prudential Retirement Fund – Pure Equity Plan

ICICI Prudential Retirement Fund’s Pure Equity Plan has been one of the top performers in the past five years. Delivering an annualised return of 29.4 per cent, this fund’s net asset value (NAV) stood at Rs 37.3, with assets under management (AUM) of Rs 1,410 crore. According to calculations, a lump sum investment of Rs 14 lakh in this fund would have grown to over Rs 50.79 lakh in five years. Experts note that its high equity exposure and disciplined management have contributed to this robust performance.

HDFC Retirement Savings Fund – Equity Plan

The HDFC Retirement Savings Fund’s Equity Plan has also shown strong performance, providing a 25.6 per cent annualised return over five years. Its NAV is Rs 58.7, with an AUM of Rs 6,693 crore. A Rs 14 lakh investment in this fund would have appreciated to approximately Rs 43.75 lakh during the same period. Analysts highlight the fund’s diversified portfolio as a key reason for its consistent returns, making it a reliable choice for long-term retirement planning.

Nippon India Retirement Fund – Wealth Creation Scheme

Nippon India Retirement Fund’s Wealth Creation Scheme has delivered an annualised return of 21.6 per cent over five years. With an NAV of Rs 33.2 and an AUM of Rs 3,179 crore, a Rs 14 lakh investment would have grown to Rs 37.22 lakh. Experts indicate that the fund’s balanced approach towards growth and moderate risk exposure makes it suitable for investors seeking both stability and appreciation in their retirement corpus.

Tata Retirement Savings Fund – Progressive Plan

The Tata Retirement Savings Fund Progressive Plan has recorded a five-year annualised return of 17.5 per cent. Its NAV is Rs 81, with an AUM of Rs 2,048 crore. A Rs 14 lakh investment in this fund would have grown to Rs 31.35 lakh in five years. According to financial analysts, its conservative investment strategy offers stability, making it ideal for investors who prefer moderate risk while still seeking reasonable growth.

Aditya Birla Sun Life Retirement Fund – The 30s Plan

The Aditya Birla Sun Life Retirement Fund’s 30s Plan has provided an annualised return of 16.5 per cent over five years. Its NAV is Rs 22.7, and AUM is Rs 411 crore. A Rs 14 lakh investment would have appreciated to around Rs 30.04 lakh in the same period. Experts recommend this fund for investors who prioritise capital preservation while still aiming for growth over the long term.

Investing in equity retirement funds can significantly enhance retirement savings if chosen wisely. According to experts, factors such as the fund’s equity exposure, historical performance, and management style play a critical role in determining returns. While past performance is not a guarantee of future results, these funds have demonstrated strong growth potential over a five-year horizon. Individuals should align fund choices with their risk tolerance, investment horizon, and retirement goals.

Disclaimer: This article is for information purposes only. Investing in mutual funds is subject to market risks. Consult your financial advisor before making any investment decisions.