Mumbai, July 28
The assets under management (AUM) of retirement mutual funds have increased by 226.25 per cent in the last five years to touch Rs 31,973 crore in June 2025, up from Rs 9,800 crore in the same month a year ago, a report said on Monday.
"Enhanced transparency and investor protection regulations have helped boost investor confidence in mutual funds as a retirement vehicle," credit rating agency ICRA Analytics said in its report.
Increasing awareness about the importance of financial planning among people and the need to build a corpus for retirement, coupled with higher life expectancy and the surge in healthcare costs, seems to be encouraging the ageing populations in India to increasingly look for retirement-focused investment products, including mutual funds, the report noted.
A retirement mutual fund is a specialised solution-oriented mutual fund whose objective is to ensure that the investor has a comfortable and secure post-retirement life.
“Equity mutual funds have captured significant inflows due to optimism about market recovery and growth, which is appealing for long-term retirement portfolios," said Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics.