This Retirement Fund Is Good For Retirement Planning, Given 10.25% Annual Average Returns

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oi-Shubham Kumar

| Published: Thursday, April 21, 2022, 16:12 [IST]

As an investor, building a long-term corpus by investing in mutual funds through SIPs is one of the smartest and your first steps toward a well-organised portfolio. If you are contemplating this as your retirement corpus, you should try to determine how much you would need in retirement to satisfy your monthly requirements in the post-retirement period. This retirement fund that we highlighted here has given good returns on SIP. Check out the details to know more.

Franklin India Pension Plan – Direct-Growth

As the name suggests, it is a retirement mutual fund scheme. This scheme was launched by the Franklin Templeton Mutual Fund. It is an open-ended medium size fund of its category. The AUM or Asset Under Management of this fund is Rs 447.94 Crore. The Net Asset Value (NAV) declared on 20Th April 2022 is Rs 169.3626. It has an expense ratio of 1.51%, which is higher than its category average of 0.93%. 

On the risk meter, it is a highly risky fund for investment. However, it has given good returns over the years. For investment in this fund, the minimum investment amount required is Rs 500, for both Lump-Sum and SIP, respectively. As this fund is a retirement fund, it comes with a 5-year lock-in period. For Redemption or switch out of units before the attainment of retirement age i.e 58 years.

Absolute And Annualised Returns

Lump-Sum Investment

Since its inception, it has delivered 10.25% average annual returns.

Investment Period Absolute Returns Annualised Returns
1 Year 7.52% 7.52%
2 Year 27.39% 12.87%
3 Year 27.52% 8.42%
5 Year 45.60% 7.80%
Since Inception 147.83% 10.25%

SIP Returns

SIP Period Absolute Returns Annualised Returns
1 Year 1.48% 2.75%
2 Year 9.27% 8.78%
3 Year 14.32% 8.89%
5 Year 23.02% 8.22%

Portfolio

The fund invests 39.87 per cent of its assets in equities, with 27.33 per cent in large-cap stocks, 5.12 per cent in mid-market stocks, and 2.14 per cent in small-cap stocks. The fund has a debt investment of 56.18 per cent, with 30.37 per cent in government securities and 25.8 per cent in funds investing in extremely low-risk securities.

The equity part of the fund is predominantly invested in the Financial, Technology, Energy, Services, and Consumer Staples sectors. The debt element of the fund has a reasonable credit quality, meaning that the borrowers to whom it has lent are of good quality.

Government of India, Reserve Bank of India (RBI), ICICI Securities Ltd., and Housing Development Finance Corpn. are among the fund’s top holdings. Ltd., as well as Kotak Mahindra Prime Ltd.

Disclaimers

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn’t guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

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Story first published: Thursday, April 21, 2022, 16:12 [IST]