In present, Retirement Mutual Fund Schemes are on the fire in terms of profit as there was a heavy increment in 2019. According to the Amfi Data, there was a hike of 24.46% in their total AUM around Rs 10,425.28 crore during April 2019-Jan 2020.
On January 31, 2020, the retirement solution-oriented schemes collected a large sum of 25.42 lakh in 24 retirement funds. It was so huge that it surpassed the amount of 24.97 lakh that was collected on April 30, 2019, in 21 solutions-oriented schemes.
Mutual fund schemes are rising as beneficial long term investments. Individuals are investing a good number in retirement schemes. One can say it, after considering the SIP contribution of Rs 8,532 crore by the retail investors. Along with the total mutual fund AAUMs reaching around Rs 28.18 lakh crore.
Currently, mutual fund schemes are the most popular investment choice of retail investors. Individuals are getting conscious of their advantages. And factors like risk reduction, portfolio management, dividend reinvestment, convenience, and fair pricing are the real crowd drivers. In the last ten months, the category of retirement solutions-oriented schemes has shown a steady growth by topping the charts of mutual funds.
Retirement-oriented mutual fund scheme is an open-ended investment scheme with a bond of five years or till retirement whatever is possible in the current circumstances.
These mix of equity and debt schemes are mostly preferred for long term investments. Along with Mutual Fund Schemes, PPF and other traditional debt-oriented are also on the rise.
Overall, the increasing stability and benefits are driving the force towards mutual funds retirement Schemes. People have understood that all these investment schemes provide the best returns and investing every month in mutual fund schemes for a longer period of time is far more financially beneficial and profitable than other investments available in the market.