Introduction

Senior citizens must plan their finances wisely after retirement. They must focus on making money work for them by choosing the right investment funds. Mutual funds are suitable investment options for senior citizens as they invest in a wide variety of assets like bonds, stocks, and other securities. Moreover, professional fund managers manage these funds. Mutual funds can help senior citizens beat inflation and hedge real returns.

Why should senior citizens invest in mutual funds?

Generally, senior citizens don’t want to explore risky investment schemes. They are in their retirement phase and cannot tackle the losses and volatility associated with market-related instruments. They are seeking methods that deliver assured returns.

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Mutual funds fit these requirements perfectly. They are a valuable investment alternative for senior citizens due to their many advantages. You can purchase them via a systematic investment plan (SIP) or a one-time lump sum. They diversify your investment across asset classes based on your objectives. Moreover, investing in mutual funds is easy through online websites and mobile apps. Their withdrawal process is also paperless and convenient.

Best mutual funds to invest in 2024 for senior citizens

1. ICICI Prudential Balanced Advantage Direct-Growth

The mutual fund was launched on October 12, 1993. It is a hybrid mutual fund offered by ICICI Prudential Mutual Fund. It uses an equity derivatives strategy and leverages arbitrage opportunities to deliver capital growth and income distribution to its investors.

As of April 22, 2024, its net asset value (NAV) was Rs. 71.43, up by 0.46%. As of March 31, 2024, the fund size was Rs. 56,174.64 crore. The expense ratio was 0.81%.

2. Axis BlueChip Fund Direct Plan-Growth

This mutual fund was launched on September 4, 2009, by Axis Mutual Fund. It invests in blue-chip stocks or stocks of predominantly large companies. The top investments in its portfolio include ICICI Bank, Reliance Industries, HDFC Bank, Bajaj Finance, Bharti Airtel, Sun Pharmaceutical Industries, Larsen & Toubro, etc.

Axis BlueChip Fund had an NAV of Rs. 62.28, up 1.1% as of April 22, 2024. Its fund size, as of March 31, 2024, was worth Rs. 33,523.02 crore. The expense ratio was 0.7%.

3. Canara Robeco Gilt PGS

Canara Robeco Gilt PGS belongs to the fund house Canara Robeco Mutual Fund. It was launched on December 29, 1999. It seeks to achieve risk-free returns while maintaining stability of liquidity and returns. Most of its allocation is in government securities.

As of April 22, 2024, Canara Robeco Gilt PGS had an NAV of Rs. 68.53. It was up by 0.22% from the previous day. The total assets under management (AUM) were worth Rs. 104 crore as of March 31, 2024. The expense ratio was 1.25%.

4. Quant ELSS Tax Saver Fund Direct-Growth

Quant ELSS Tax Saver Fund was made available to investors on April 15, 1996. It allows you to deduct taxes under Section 80C while saving for long-term goals. Its investments are mostly in equity shares with growth potential. The leading investment sector is energy, followed by metals and mining, finance, technology, and healthcare.

As of April 22, 2024, Quant ELSS Tax Saver Fund had an NAV of Rs. 406.54. Its fund size was Rs. 8,341.96 crore as of March 31, 2024. The expense ratio was 0.76%.

5. SBI PSU Fund Direct Plan-Growth

SBI PSU Fund Direct Plan-Growth is an equity mutual fund belonging to SBI Mutual Fund. Its company holdings include the State Bank of India, Power Grid Corporation of India, NTPC, Oil and Natural Gas Corporation, and others.

As of April 22, 2024, its NAV was Rs. 32.40. As of March 31, 2024, its fund size was Rs. 1,875.84 crore. It has an expense ratio of 0.96%.

Wrapping up

When senior citizens choose to invest in mutual funds, they have specific investment goals. They have a different set of challenges as their retirement age approaches. Thus, they must invest in funds that can safeguard their wealth, offer liquidity, and provide a steady income stream.

While there are no particular mutual funds for senior citizens, there are options that can fulfil their financial objectives and requirements. You just read about five such mutual funds and can choose to invest in them depending on your investing strategy.

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