Top Best Mutual Funds for Senior Citizens in 2022

In today’s world, there are several wealth-generation options for senior citizens, like fixed deposits, Senior Citizen Saving Schemes (SCSC), mutual funds, etc. They serve as an excellent way to build wealth and yield regular income in one’s retirement years.

However, when it comes to mutual funds, there is a common misconception that these instruments are too risky and, therefore, not a suitable investment tool for senior citizens. This is not true, as there are several mutual funds that are custom-made, keeping in mind the needs and risk tolerance of aged individuals. To know about the best mutual funds for senior citizens, read on.

Top 5 mutual funds for senior citizens

These are the top 5 mutual funds that senior citizens can invest in 2022:

• ICICI Prudential Balanced Advantage Direct-Growth

Launched on 12 October 1993, the ICICI Prudential Balanced Advantage Direct-Growth is a hybrid mutual fund. Its aim is to generate capital for its investors and distribute income by employing pure equity investments, arbitrage opportunities and equity derivative strategies.

At the time of writing, this mutual fund has a net asset value of Rs.56.59 and an expense ratio of 0.92%. Currently, this fund has Rs.42,989 crore worth of assets under management. This mutual fund’s 3-year growth rate is 13.20%, and its average annual returns rate is 12.81%.

In addition, the starting SIP amount of this mutual fund is Rs.100, and the minimum lumps sum investment amount is Rs.500. The top 5 holdings are – GOI, Reliance Industries Ltd., ICICI Bank Ltd., Infosys Ltd. and HDFC Bank Ltd.

Note – This information is based on data collected on 15 October 2022.

• Axis BlueChip Fund Direct Plan-Growth

Axis BlueChip Fund Direct Plan-Growth is another good example in the list of mutual funds for senior citizens. It was launched on 4 September 2009. It is an equity mutual fund scheme that has the objective of generating long-term capital growth. This mutual fund has a diversified portfolio composed of equity and equity-related instruments of large-cap companies. 

This mutual fund, at the date of writing, has a net asset value of Rs.48.5. It has an expense ratio of 0.55% and a fund size of Rs.35822.38 crore. Furthermore, this fund has a 3-year growth rate of 13.36% and an average annual returns rate of 15.07%. Its minimum SIP amount is Rs.100, and starting lump sum investment is Rs.500.

In addition, this mutual fund has no lock-in period and is a good investment option for investors looking for a long-term investment (with an investment horizon of greater than 5 years).

The top 5 holdings of this company are – Bajaj Finance Ltd., ICICI Bank Ltd., Avenue Supermarts Ltd., HDFC Bank Ltd. and Infosys Ltd. 

Note – This information is based on data collected on 15 October 2022.

• ICIC Prudential Ultra Short-Term Fund Direct-Growth

Available in the market from 12 October 1993, the ICIC Prudential Ultra Short-Term Fund Direct-Growth is a debt fund with moderate risk. The investment objective of this mutual fund is to generate wealth by purchasing a plethora of debt and money market instruments. 

You can invest in this mutual fund with a starting SIP of Rs.1,000 and a minimum investment amount of Rs.5,000. It has Rs.12,245 crore worth of assets under management and a 3-year annual growth rate of 5.69%. Its net asset value is of Rs.24.49, and its average annual returns of 8.13%. Furthermore, this mutual fund has an expense ratio of 0.39%.

This mutual fund’s top 5 holdings are the Reserve Bank of India, National Bank for Agriculture & Rural Development, HDFC Bank Ltd. and Canara Bank.

Note – This information is based on data collected on 15 October 2022.

• HDFC Short-Term Debt Fund Direct Plan-Growth

The HDFC Short-Term Debt Fund Direct Plan-Growth came to the market on 10 December 1999. It is a mutual fund with moderate risk which has a strategy to appreciate its capital by investing in money market instruments and debt securities. 

To start investing in this mutual fund, you can opt for the minimum SIP amount of Rs.300 or go for the starting lump sum amount of Rs.5,000. Currently, this mutual fund has a net asset value of Rs.26.55, and its 3-year annual growth rate is 6.60%. In addition, it also has an expense ratio of 0.29%. 

Furthermore, this fund house has Rs.13,516 crore worth of assets under management. Also, its average annual returns rate starts at 8.05%. GOI, Samvardhana Motherson International Ltd., IndInfravit Trust, State Bank of India and REC Ltd. are this fund’s top 5 holdings. 

Note – This information is based on data collected on 15 October 2022.

• HDFC Retirement Savings Fund Equity Plan Direct-Growth

HDFC Retirement Savings Fund Equity Plan Direct-Growth was launched in the market on 10 December 1999. It aims to fulfil the retirement goals of its investors by increasing their wealth in the long term. The fund manager achieves this by purchasing both equity and debt instruments.

Currently, this mutual fund has a 3-year growth rate of 23.40%. Its net asset value is of Rs.32.73, and it has Rs.2,288.40 crore worth of assets under management. The minimum SIP amount of this mutual fund is Rs.100, and starting lumpsum investment amount is Rs.5,000. However, this mutual fund has a 5-year lock-in period.

Moreover, it has an expense ratio of 0.86% and an average annual returns rate of 19.56%. The top 5 holdings are ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd. and Bharti Airtel Ltd. 

Note – This information is based on data collected on 15^th October 2022.

Now that you know the best mutual funds for senior citizens, you can select one that suits your risk profile the most. However, before you choose one, keep in mind a few factors. The mutual fund must align with your financial goals. Moreover, the fund should align with your investment objective and should have a lower expense ratio. 

Furthermore, every mutual fund has at least a minimum amount of risk. So, it is crucial that you take this risk factor into account before investing in one.