Are Indians Finally Planning for the Long Run

For those outside the public sector, pension security options in India are limited. That said, the move towards structured retirement plans is becoming increasingly popular, especially in urban India. Retirement planning is non-negotiable due to several factors, such as inflation, increased financial awareness, and longer life expectancies.

For a financially secured future, people are also investing in life insurance policies, government pension plans, etc. One investment option that’s steadily gaining popularity apart from the conventional ones is the retirement mutual fund.

What are Retirement Mutual Funds?

Retirement mutual funds are investment plans designed to assist people to build income for their post-retirement years. These funds usually focus on growth and safety of investments and are designed to help investors accumulate a secure corpus for their post-retirement life. From equity to debt, these funds invest in a mix of instruments. For instance, investing in equities supports wealth growth while debt instruments are needed for capital preservation, risk management, and stability.

Investing heavily in equities might help young investors with long-term market gains. However, the portfolio must be rebalanced for reduction of risk exposure as retirement nears. Another important consideration is that these funds come with a minimum lock-in period of five years or retirement itself (whichever comes first).

Apart from growing financial awareness, the rise of investor-friendly digital platforms has made investing easier. Other reasons are increased transparency and investor protection regulations. Combining these factors shows how Indians are now more focused than ever on long-term retirement planning.

A press release by ICRA Analytics reported that the Assets Under Management (AUM) of retirement mutual funds in India has increased by 226.25% in the last five years. From ₹9,800 crores in June 2020, it increased to a staggering ₹31,973 crores in June 2025. Simultaneously, the total number of folios has also risen to 30.09 lakhs, an increase of 18%. This growing trend reflects that more and more Indians are turning to long-term financial planning.

This surge in the popularity of retirement investments is a significant cultural shift prioritising self-reliance over dependence.

If you’re ready to start, choose a SEBI-registered retirement-focused mutual fund with a good track record. Match it to your target retirement age and start a monthly SIP. Stay disciplined, review once a year and let compounding quietly build your wealth with time.

Conclusion:

Though retirement funds are attractive for long-term wealth creation, they aren’t risk-free. Before investing, consider your age, financial requirements, and risk appetite. If needed, reach out to a financial advisor or planner for smarter decision-making.

An Investor education and Awareness initiative of Aditya Birla Sun Life Mutual Fund

All investors have to go through a one-time KYC (Know Your Customer) process. Investors to invest only with SEBI registered Mutual Funds. For further information on KYC, list of SEBI registered Mutual Funds and redressal of complaints including details about SEBI SCORES portal, visit link : https://mutualfund.adityabirlacapital.com/Investor-Education/education/kyc-and-redressal for further details.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully

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