Accumulate your desired retirement corpus with these 5 funds

If your financial goal is to achieve something after a long period of time, invest money in equity companies because they provide better returns than debt-based or conventional funds. investment method such as fixed deposits. However, it totally depends on your desired risk appetite, but investing in the right equity will allow you to grow your money along with the company or industry in which you invest.

Retirement planning is a long-term investment plan, let’s understand which investment plan will help you achieve your desired retirement corpus.

Large funds

If you do not expect to take the risk of losing capital with your hard-earned money, large-cap funds may be a suitable investment option for you. Large cap funds refer to funds when a mutual fund company invests a large portion of companies with large capitalization, which is more than 20,000 cr., like Reliance, TCS, and HDFC. These companies are likely to give you solid returns, with little risk of losing capital because these companies are prone to bankruptcy.

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Hybrid funds

Hybrid funds mean funds where your money is invested in equity and debt in a pre-decided proportion. By investing in this way, you can ensure your return with the help of debt funds, as a fixed income investment, you will get a certain amount of interest every interval regardless of the profit and loss of company. This may be a suitable option for you if you do not have an appetite for the risk of losing investment returns as capital.

Multi cap fund

If you can take a moderate risk to invest your money, with the expectation of a better return compared to the previous ones. Multi-cap funds are funds where your money is invested in small, large, and mid-cap funds with at least 25% in each. You get the stability factor of large funds and the growth factor of mid and small-cap funds.

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Mid and small cap funds

Investing in mid-cap and small-cap funds can help you get the level of growth as small- and mid-cap companies grow faster than large-cap companies, mainly because companies in large cap is enough to grow but mid-cap and small cap companies are in a growing stage. The stock price of mid-cap and small-cap funds is relatively low because they are in a difficult phase and in recent times, they tend to grow as adults.

Sector funds

Sector funds are a very risky investment option where you invest in a particular sector or an industry that has great potential to grow your money rapidly during your retirement tenure. For example, if you think that the EV industry is growing and the government is also supporting it due to climate control pressures, you can invest in EVs to grow your money. It is a very risky investment and you need to do a lot of research before investing in the same.

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Your retirement planning is an important part of personal finance because you can’t afford to lose the lifestyle you’re living now. You need to maintain your lifestyle even after you retire, so be careful where you invest your money for retirement.

Anushka Trivedi is a freelance financial content writer. He can be contacted at


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First Published: 06 Jan 2023, 10:15 AM IST


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