Top Mutual Funds for Senior Citizens for Investment in 2025
The senior citizens who are reaching retirement or others who want to secure a solid and safe financial future for their parents, having certain investments ready is important. There are a lot of sources through which old citizens can get paid, one such being mutual funds. We shall examine here the top mutual funds that pay dividends to elderly citizens and at the same time conserve their money.
Top Mutual Funds for Senior Citizens in 2025
The top mutual funds for senior citizens invest in a range of assets that reduce risks and earn returns on their investments. Below are the top mutual funds for senior citizens according to the 3-year annualized returns and the risk level of the schemes.
HDFC Hybrid Equity Fund, which is a hybrid fund with experience of almost three decades, has given a 3-year annualized return of 23.03%, with a very high risk. It has an AUM of Rs.762.93 crore, with 74.6% invested in equity, 19.4% in debt, and 6.1% in cash.
ICICI Prudential Balanced Advantage Fund, with its large asset base of Rs.95,521 crore, has given a 3-year annualized return of 20.35%, having 53.7% in equity, 30.1% in debt, and 14.8% in cash.
Kotak Multi Asset Allocator Fund of Fund has delivered a 3-year return of 19.25% at a relatively high risk level. It has assets under management worth Rs.51,027 crore, with 48.2% in equity, 16.8% in debt, and 22% in cash.
Tata Multi Asset Opportunities Fund, which has Rs.3,201 crore under management, has returned 19% over 3 years with 54.2% in equity, 10.5% in debt, and 22% in cash.
HDFC Retirement Savings Fund—Hybrid Equity Plan, meant for long-term wealth generation, has given an 18.59% return over three years with moderately high risk. It has Rs.747.48 crore worth of assets, 84% of which is in equity, 13% in debt, and 2.8% in cash.
SBI Equity Hybrid Fund, with a high-risk profile being moderate, has returned 16.48% over three years, handling Rs. 1,522.49 crore and having 76.4% in equity, 21% in debt, and 2.6% in cash.
For moderate-risk investors, ICICI Prudential Equity Savings Fund has given a 12.41% return over three years, with Rs.645.63 crore in assets, allocating 37.1% to equity, 23.2% to debt, and 39.7% in cash.
Aditya Birla Sun Life Equity Savings Fund, which has Rs.1,051.39 crore in assets, has given a 12.03% return with 33.7% in equity, 24% in debt, and 42.3% in cash.
Things to Consider While Investing in a Mutual Fund for Senior Citizens
There are numerous choices available in the market as far as the top senior citizen mutual funds in India are concerned. But one needs to consider certain important things while making an investment decision in this regard.
Risk
Risk and return are major points of consideration while investing in a mutual fund by senior citizens. Care has to be taken to balance reducing the risk and optimizing the returns to ensure the financial security of senior citizens.
SIP and SWP
Invest through a systematic investment plan (SIP) or a systematic withdrawal plan (SWP), if possible. Both have several advantages for senior citizens. While investing for the future, a corpus can be created through an SIP. An SWP enables senior citizens to withdraw money at regular intervals, giving them a steady flow of income.
Tax Implications
One should keep in mind the tax effects of the scheme one invests in. Based on the asset allocation, a fund can be considered an equity or debt fund. Additionally, investing in a scheme that has tax benefits can prove to be beneficial for the investor.
Costs and Fees
Just like any other investment, one should know and compare the costs and charges involved with a mutual fund. Charges such as entry load, exit load, and expense ratio have the potential to affect the investor’s return on investment.
Advantages of Investing in Mutual Funds for Senior Citizens
Investing in a mutual fund can have various benefits for senior citizens. These are the following:
Diversification
A senior citizen mutual fund attempts to balance risk and returns. Therefore, these schemes invest in a mix of assets so that risk is diversified and a diversified portfolio is offered to the investors.
Regular Income
Investors can also earn a regular income by investing in some schemes which give dividends and interest. Regular income can be used by investors to meet their day-to-day expenses or accumulate a savings corpus.
Tax Benefits
Investors who are senior citizens and invest in mutual funds can claim tax benefits under Section 80C of the Income Tax Act.
Professional Management
Mutual funds are handled by professionally experienced fund managers. This enhances the prospects of the funds providing good returns to senior citizens.
Conclusion
It is necessary that each individual makes provision for a secure retired life. This can be achieved by investing in the finest mutual funds with an objective in accordance with the senior citizen’s interest. They are capable of providing diversification to their investment, creating income generation, and minimizing risk.
