retirement The plan is different for each person. It depends on many factors like income need, an alternate source of income, family health history etc. Planning correctly for your retirement is an essential long-term goal as it will allow you to make the most of it and help you feel fulfilled. Your dreams. With so many mutual fund schemes available in the market, it can be tedious to finalize the schemes that suit your retirement needs. These strategies can help you identify some mutual funds that can fulfill your vision for your retirement.

If you are looking to build a healthy corpus for your retirement fund through solution-oriented equity investments, here are some tips to help you find a suitable mutual fund as per your requirement:

1. Invest in Mutual Funds offered by an established AMC

Now it is important that you hand over your hard earned money to an established fund house. One of the major reasons behind the positive performance of Mutual Funds is the fund management and Asset Management Company (AMC), which form its backbone. Hence, consider investing in mutual fund schemes offered by AMCs who have a proven track record.

2. Invest in funds with a good track record

New investors seeking long term capital appreciation can invest in a scheme which is currently performing well. But to be honest, it is not a wise way to invest as the currently performing Mutual Fund scheme may not continue its positive momentum and give similar results in future. So, here investors need to understand that they need to do a little more research and analysis as to how the fund has performed in the past.

If the fund has managed to generate low but consistent returns over a long period of time, it means that the fund is in good management hands, and you are likely to make some profits as well. Remember that it is not always about making more profits; Continuity is essential. So, don’t get lured by the current performance of a scheme and take your investment decision.

3. Don’t invest in too many mutual funds

Keep in mind that diversification means reducing your exposure to a single asset. But this does not mean that only one type of scheme should fill your mutual fund portfolio. Investors should try and avoid investing in new mutual funds at all costs. This is because you can invest in multiple mutual funds and later it may become difficult to manage them and track them regularly. Try to limit your mutual fund investments to one or two at most. Invest in mutual funds that have been consistent with their performance instead of investing in the gains of the last one or two years.

4. Find out whether you want to go with the growth option or the dividend option

Mutual fund schemes are available to the investors in two options – Growth and Dividend. Which option should you go for? Well, it totally depends on who you are and what are your financial needs. Investors dependent on mutual funds can opt for dividend option for regular income. However, investors opting for dividends may miss out on the power of compounding. On the other hand, investors seeking long-term capital appreciation may find the growth option a bit more favorable to them. Investors going with the growth option usually get a chance to benefit from the power of compounding.

We hope that the above red flag pointers will help you narrow down on a suitable mutual fund that can help you build a good retirement corpus. Invest in a retirement fund that has the potential to give you some decent returns.

“This is an investor education and awareness initiative by Axis Mutual Fund. Investors need to complete a one-time KYC process. For more details visit www.axismf.com or contact us at [email protected]. Investors should only Should deal with registered mutual funds, details of which are available at www.sebi.gov.in – INTERMEDIARIES/MARKET INFRASTRUCTURE INSTITUTIONS section. For any grievance redressal, investors may call us at 1800 221 322 or write to us at customerservice@ axismf.com or register a complaint on SEBI SCORE portal.
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Mutual Fund investments are subject to market risks, read all scheme documents carefully.