Retirement mutual funds' AUM jumps 226% in 5 years: Here are the top 10 performers
Data shows that the Assets under Management (AUM) of retirement mutual funds surged by 226% over the last five years, reaching ₹31,973 crore in June 2025 compared to just ₹9,800 crore in June 2020.
At the same time, the total number of folios rose by over 18% to 30.09 lakh.
Retirement mutual funds are solution-oriented funds designed to help investors build a secure corpus for life after work. They typically invest in a mix of equity and debt. The equity portion helps grow wealth, while the debt portion adds stability and preserves capital.
Such funds come with a lock-in period of five years or until retirement, whichever is earlier.
Industry experts say investor-friendly digital platforms and robo-advisors have also driven growth in this segment by making it easier for people to invest.
“These tools offer personalised portfolio recommendations based on age, risk tolerance and retirement goals, encouraging wider participation,” said Ashwini Kumar, Senior Vice President and Head – Market Data at ICRA Analytics.
The number of retirement-focused schemes has also grown to 29 from 24 five years ago. The average compound annual returns from these funds stood at 6.79% for 1 year, 15.72% for 3 years and 14.64% for 5 years as of March 31, 2025, as per MFI360Explorer.
Year-wise AUM and folio trends
Period | Net AUM (₹ crore) | Number of folios (lakh) |
Jun-20 | ₹9,800 crore | 25.46 lakh |
Jun-21 | ₹14,742 crore | 26.36 lakh |
Jun-22 | ₹15,673 crore | 26.96 lakh |
Jun-23 | ₹20,199 crore | 27.47 lakh |
Jun-24 | ₹28,713 crore | 29.24 lakh |
Jun-25 | ₹31,973 crore | 30.09 lakh |
(Source: ICRA Analytics)
Top 10 performing retirement mutual funds
For investors looking to choose, here are the top 10 retirement mutual funds based on 5-year returns:
Scheme name | 1-year return (%) | 3-year return (%) | 5-year return (%) |
ICICI Prudential Retirement Fund – Pure Equity Plan | 11.79% | 28.13% | 30.32% |
HDFC Retirement Savings Fund – Equity Plan | 5.7% | 23.99% | 27.46% |
Nippon India Retirement Fund – Wealth Creation Scheme | 2.93% | 22.93% | 23.01% |
ICICI Prudential Retirement Fund – Hybrid Aggressive Plan | 8.44% | 23.99% | 22.71% |
HDFC Retirement Savings Fund – Hybrid Equity Plan | 6.27% | 18.6% | 20.02% |
Tata Retirement Savings Fund – Progressive Plan | 7.3% | 21.28% | 19.44% |
Tata Retirement Savings Fund – Moderate Plan | 8.37% | 19.36% | 17.83% |
Aditya Birla Sun Life Retirement Fund – The 30s Plan | 7.75% | 19.2% | 16.22% |
Axis Retirement Fund – Dynamic Plan | 7.34% | 18.13% | 15.61% |
UTI Retirement Fund | 8.35% | 14.53% | 14.92% |
(Note: Returns above 1 year are compound annualised; data as of March 31, 2025; source: ICRA Analytics)
Financial planners, however, remind investors that while retirement funds can help create long-term wealth, they are not risk-free. It’s essential to choose funds that match one’s age, risk profile and retirement goals.
Healthcare costs, inflation, and longer life spans make it crucial to plan ahead. Investors should review their portfolios regularly and seek professional advice if needed, experts say.
First Published: Jul 29, 2025 10:52 AM IST