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Retirement Funds

Build your retirement corpus with market-linked returns through retirement-oriented mutual funds and also enjoy tax benefits.

Average returns - Dynamic
Number of funds - (Static)

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What are
retirement-oriented mutual funds?

A retirement mutual fund is a solution-oriented investment scheme which allows you to save up for your golden years. It has a lock-in period of 5 years or till you retire, whichever is earlier.

Advantages of retirement mutual funds

Disciplined investment

With a lock-in period of 5 years, you can save up for retirement and build a corpus over the investment tenure.

Market Linked returns

With equity-oriented retirement funds, you can expect to earn returns on investments which are also inflation-adjusted.

Tax benefits

Investment in Retirement mutual fund qualify for a deduction under Section 80CCC up to Rs.1.5 lakhs.

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Mr. Mohammad Moosa Azmi

Aditya Birla Home Finance

My trading experience with ABM has been very fruitful. I have always been receiving excellent support from my dealer. Moreover, the transparent business practices at ABM makes it the preferred broker in the industry.

Mrs. Priyanka Sharma

Aditya Birla Money Customer

Mumbai

Mr. Sandip Prajapati

Aditya Birla Sun Life Insurance Customer

Aditya Birla Health Insurance has been my companion in my weight loss journey of losing 17 Kgs and helping me stay disease-free. Health Returns keeps my whole family motivated to be active and stay fit and each person can do the exercise of their choice

Mr. Rajinder Balhara

Aditya Birla Health Insurance Customer

Delhi

Mrs. Kavita Nilesh Chordiya

Aditya Birla Health Insurance Customer

Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.

Mr. Bansal

Aditya Birla Sun Life Insurance Customer

Haryana

Mr. Vivek Mishra

Aditya Birla Sun Life Pension Management Customer

The digital platform and whatsapp service of ABHFL gives me a quick access to my basic loan details such as statement of accounts, loan account details, interest certificate, and repayment schedule.

Mr. Arpit Jain

Aditya Birla Housing Finance Customer

Gurgaon

Understanding Retirement Funds

What are retirement funds?What are the features of retirement funds?What should you know before investing in retirement funds?Who should invest in retirement funds?What is the tax implication of retirement funds?How can you withdraw from retirement funds?

What are retirement funds?

Retirement funds are solution-oriented mutual funds which aim to create a corpus for retirement. They have a lock-in period which allow you to save in a disciplined manner.

What are the features of retirement funds?

Lock-in of 5 years or till retirement, whichever is earlier
SIP or lump sum investment
Payout in lump sum or through regular income
Tax benefit on invested amount
Asset allocation in equity and debt securities

What should you know before investing in retirement funds?

There’s a lock-in period which restricts liquidity in the initial investment years
You can choose from debt-oriented or equity-oriented funds based on your risk profile
There’s a Systematic Withdrawal Plan (SWP) which gives regular annuities from the accumulated fund
If you invest in equity-oriented funds, invest with a long-term view to ride out short-term volatility.
There might be an exit load on redemption

Who should invest in retirement funds?

Those who want regular incomes after retirement

Investors looking to diversify their portfolio

Individuals looking for tax-saving benefits from investments

Who should buy a Savings Plan?

Equity-oriented funds

• Returns up to Rs.1 lakh are tax-free
• Returns exceeding Rs.1 lakh are taxed at 10%

Debt-oriented funds

• Returns earned are taxed at income tax slab rates

How can you withdraw from retirement funds?

Lump sum

• Withdraw in a lump sum once the lock-in period is over

SWP

• Choose the Systematic Withdrawal Plan and withdraw a fixed amount every month or week from the investment to create a regular source of income. The invested amount keeps on growing.

ULIP

Invest and secure with ULIPs

Market-linked returns
Flexibility: withdraw, switch, top up

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Bonds

Guaranteed returns, liquid trading

Diverse bond types
Stable portfolio returns

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FAQs On Retirement Funds

A retirement fund, also referred to as a pension fund, is an investment vehicle designed for individuals to systematically save a portion of their income to secure financial stability during retirement. These funds provide a consistent income stream in the form of an annuity throughout the retiree's lifetime.

Managed on behalf of the investor, pension funds invest in a diversified portfolio, typically favoring low-risk options such as government securities to ensure stable returns. The generated income from these investments contributes to the interest provided on the pooled funds. Equity oriented fund invest in equity product which may result to higher growth but may come with volatility in short term

The fundamental purpose of a retirement mutual fund is to create a retirement corpus for your old age. With targeted maturity, you can save regularly and create a corpus for financial needs after retirement.

Retirement funds serve as a financial resource for meeting daily needs and unexpected expenses. They are particularly well-suited for individuals seeking assured returns in their senior years.

Planning your retirement early in life certainly has its advantages, some advantages of investing in a retirement fund are:

Financial Security for Emergencies: Retirement planning ensures a substantial corpus, providing a safety net for unforeseen financial crises in post-employment years.

Optimized Returns on Investments: Investing in retirement plans allows for savings growth over time, optimizing returns through strategic planning.

Tax Benefits: Retirement plans offer tax advantages, reducing taxable income and enabling effective management of investment expenses within legal frameworks.

Cost Savings Through Early Planning: Initiating retirement planning at a younger age leverages lower premium rates and reduces long-term investment costs.

Peace of Mind and Financial Independence: Retirement planning instills confidence and financial independence, offering a sense of security during various life stages.

If you consider healthcare costs when making investment decisions, you can tailor the investment amount accordingly. The returns from the investment will be sufficient for future medical expenses.

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Retirement Funds