Looking Beyond EPF? These Retirement Mutual Funds Delivered Up To 21% Returns

According to industry data, the mutual fund industry's AUM increased from Rs 33.06 trillion as of May 31, 2021, to Rs 81.58 trillion as of May 31, 2026.

Within this, retirement planning is becoming an increasingly important part of personal finance as rising life expectancy and inflation continue to shape long-term financial goals.

Source : Freepik

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Key points generated by AI, verified by newsroom

• Mutual fund AUM nearly tripled, reaching ₹81.58 trillion.
• Retirement funds offer structured wealth creation for post-retirement.
• ICICI Prudential Pure Equity led retirement funds, 21.34% return.

The growing popularity of mutual funds is reflected in the sharp rise in industry assets under management (AUM) over the past five years. Despite periods of market volatility, investors have continued to allocate money to mutual fund schemes in search of higher long-term returns. According to industry data, the mutual fund industry's AUM increased from Rs 33.06 trillion as of May 31, 2021, to Rs 81.58 trillion as of May 31, 2026.

The nearly three-fold increase highlights growing investor confidence in mutual funds as a long-term wealth creation vehicle. Within this, retirement planning is becoming an increasingly important part of personal finance as rising life expectancy and inflation continue to shape long-term financial goals.

Retirement funds are solution-oriented mutual fund schemes designed to help investors accumulate wealth for their post-retirement years. These schemes typically invest in a mix of equity and debt instruments, depending on their investment mandate, while encouraging disciplined long-term investing through mandatory lock-in periods. Against this backdrop, several retirement-oriented mutual fund schemes have delivered strong returns over the last five years. Based on trailing five-year returns as of June 22, 2026, the following schemes emerged as the top performers in the retirement fund category.

Top 5 Retirement Mutual Funds Based on 5-Year Returns

Rank Mutual Fund 1-Year Return (per cent) 5-Year Return (per cent) Since Inception Return (per cent)

1 ICICI Prudential Retirement Pure Equity Fund 9.74 21.34 18.72

2 ICICI Prudential Retirement Hybrid Aggressive Fund 10.73 16.13 15.19

3 HDFC Retirement Savings Fund – Equity Plan -3.27 13.51 16.59

4 Nippon India Retirement Wealth Creation Scheme 0.91 12.76 9.63

5 SBI Retirement Benefit Fund – Aggressive Plan 0.05 12.44 13.50

ICICI Prudential Retirement Pure Equity Fund topped the category with a five-year annualised return of 21.34 per cent. The scheme also generated a since-inception return of 18.72 per cent, reflecting the benefits of a long-term equity-focused strategy. While historical performance offers insight into how schemes have navigated different market cycles, investors should evaluate factors such as risk appetite, investment horizon and retirement goals before making investment decisions. 

“Disclaimer: This article uses information originally published by Dalal Street Investment Journal (DSIJ). The views expressed are those of the original authors and not necessarily of ABP Network Pvt. Ltd. This content is provided for general informational and educational purposes only and should not be construed as investment, financial, legal or tax advice. Readers are advised to conduct their own research and/or consult a qualified financial advisor before making any investment decisions. This content is for informational purposes only and should not be treated as investment advice. ABP Network, its employees and associates shall not be responsible or liable for any losses or damages arising directly or indirectly from the use of or reliance on this article or any information contained herein.”