Retirement planning is a critical aspect of financial security, allowing individuals to build a corpus that ensures a comfortable lifestyle post-retirement. In India, retirement mutual funds have gained popularity due to their ability to balance growth, stability, and tax efficiency. These funds typically come with a lock-in period of five years or until the investor reaches retirement age (whichever is earlier), making them a disciplined choice for long-term wealth creation. By investing in a mix of equities, debt, and other securities, these funds aim to provide steady returns while mitigating risks. Below, we explore some of the top-performing retirement mutual funds in India for 2025, focusing on their performance, features, and current Net Asset Value (NAV) prices as of recent data.
ICICI Prudential Retirement Fund – Pure Equity Plan
The ICICI Prudential Retirement Fund – Pure Equity Plan is a flexi-cap mutual fund designed for investors seeking high growth through equity investments. Launched on January 29, 2019, this fund allocates its assets across large-cap, mid-cap, and small-cap stocks to maximize capital appreciation over the long term. As of February 6, 2025, the fund’s Assets Under Management (AUM) stand at Rs. 1,063.22 crore, with an expense ratio of 0.72%, which is competitive for its category. The fund has delivered an impressive five-year Compound Annual Growth Rate (CAGR) of 24.10% and a three-year CAGR of 20.28%, making it a strong performer for aggressive investors. The current NAV as of July 31, 2025, is approximately Rs. 30.52 for the regular plan and Rs. 33.94 for the direct plan. This fund is ideal for those with a high-risk appetite looking to build a substantial retirement corpus through equity exposure.
HDFC Retirement Savings Fund – Equity Plan
The HDFC Retirement Savings Fund – Equity Plan is another top performer, known for its consistent returns and robust management by HDFC Asset Management Company, one of India’s leading fund houses. Launched in February 2016, this fund focuses on equity investments to drive long-term wealth creation. It has an AUM of Rs. 6,009 crore as of January 7, 2025, with a low expense ratio of 0.71%. The fund has achieved a five-year CAGR of 24.83% and a three-year CAGR of 19.47%, showcasing its ability to deliver strong returns. The current NAV as of July 31, 2025, is around Rs. 49.53 for the regular plan and Rs. 57.54 for the direct plan. In the past six months, the fund has seen significant AUM growth of Rs. 651.66 crore, reflecting strong investor confidence. This fund suits investors seeking high returns with a long-term horizon, leveraging the expertise of a reputed fund house.
Nippon India Retirement Fund – Wealth Creation Plan
The Nippon India Retirement Fund – Wealth Creation Plan is designed for investors aiming to accumulate wealth through equity-focused investments. Established under Nippon India Mutual Fund, this fund has an AUM of Rs. 3,467 crore as of August 31, 2024, with an expense ratio of 0.98%. It has delivered a five-year CAGR of 17.62% and a three-year CAGR of 16.96%, making it a reliable choice for long-term growth. The fund’s NAV as of October 16, 2023, was Rs. 30.52 for the regular plan and Rs. 33.94 for the direct plan, though more recent NAV data is not available in the provided references. The fund invests heavily in equities (71.54%), with top holdings in blue-chip stocks like HDFC Bank, ICICI Bank, and Reliance Industries. This fund is suitable for investors who want a balance of growth and stability in their retirement portfolio.
Tata Retirement Savings Fund – Moderate Plan
For investors seeking a balanced approach, the Tata Retirement Savings Fund – Moderate Plan offers a mix of equity and debt investments. Launched in November 2011, this fund has an AUM of Rs. 2,108 crore as of January 7, 2025, and a low expense ratio of 0.60%, making it cost-effective. It has delivered a five-year CAGR of 16.90% and a three-year CAGR of 14.16%, providing steady returns with moderate risk. The current NAV as of October 16, 2023, was Rs. 49.53 for the regular plan and Rs. 57.54 for the direct plan, though investors should check for updated NAVs. With 83.54% of its portfolio in equities, including large-cap stocks like HDFC Bank and Reliance Industries, this fund is ideal for moderate-risk investors who want growth without excessive volatility.
Franklin India Pension Plan
One of the oldest retirement-focused mutual funds, the Franklin India Pension Plan was launched on March 31, 1997. This conservative flexi-cap fund allocates assets to both equity and debt to ensure stable long-term returns. As of February 6, 2025, it has an AUM of Rs. 506.27 crore and an expense ratio of 1.51%. The fund has delivered a five-year CAGR of 9.80% and a three-year CAGR of 10.12%, making it suitable for conservative investors. The NAV as of February 6, 2025, is not explicitly stated in the provided data, but investors can access real-time updates through platforms like Angel One or Moneycontrol. This fund is a good choice for those prioritizing stability over high returns, with a focus on debt instruments for steady income.
Key Features of Retirement Mutual Funds
Retirement mutual funds in India are designed to cater to long-term financial goals, offering several advantages. They typically have a lock-in period of five years or until retirement age, ensuring disciplined investing. These funds invest in a diversified portfolio, with equity-oriented funds focusing on growth and hybrid or debt-oriented funds emphasizing stability. Many funds, such as those under Section 80C, offer tax deductions up to Rs. 1.5 lakh, enhancing their appeal. Additionally, the power of compounding through Systematic Investment Plans (SIPs) allows investors to build a significant corpus over time. For example, a monthly SIP of Rs. 5,000 at a 12% return over 30 years could grow to Rs. 1.75 crore, as noted by ICICI Prudential AMC. However, investors should be aware of risks, such as market fluctuations, over-diversification, and illiquidity due to lock-in periods.
How to Choose the Right Fund
Selecting the best retirement mutual fund depends on an investor’s risk tolerance, investment horizon, and financial goals. Aggressive investors may prefer equity-focused funds like the ICICI Prudential or HDFC Retirement Savings Fund – Equity Plan, while conservative investors might opt for the Franklin India Pension Plan or Tata Retirement Savings Fund – Moderate Plan. Key factors to consider include the fund’s historical performance, expense ratio, AUM, and the fund manager’s track record. Investors should also align the fund’s objectives with their retirement goals, such as desired lifestyle and anticipated expenses. Regular monitoring and adjustments based on market trends and personal financial changes are crucial for optimizing returns.
Retirement mutual funds offer a compelling option for building a secure financial future in India. Funds like the ICICI Prudential Retirement Fund – Pure Equity Plan and HDFC Retirement Savings Fund – Equity Plan stand out for their high returns, while the Tata Retirement Savings Fund – Moderate Plan and Franklin India Pension Plan cater to those seeking stability. With current NAVs ranging from Rs. 21.48 (Axis Retirement Fund) to Rs. 57.54 (Tata Retirement Savings Fund – Direct Plan) as of recent data, investors have a range of options to suit their needs. For the most accurate and up-to-date NAVs, investors should consult platforms like Moneycontrol, Angel One, or the respective fund house websites. By starting early, investing regularly through SIPs, and choosing funds aligned with their risk profile, investors can harness the power of compounding to achieve a financially secure retirement.
