Research firm ICRA Analytics on Monday said that enhanced transparency and investor protection regulations have helped boost investor confidence in mutual funds (MFs) as a retirement vehicle.
The assets under management (AUM) of retirement MFs have increased 226.25% in the last five years to touch ₹31,973 crore in June 2025, up from ₹9,800 crore in June 2020.
The firm said that increasing awareness about the importance of financial planning among people and the need to build a corpus for retirement is raising the importance of retirement MFs. According to ICRA Analytics, such retirement MFs have exposure to both debt and equity, that focus on wealth appreciation and preservation, assuring income stability.
Total number of folios under such schemes increased 18.21% at 30.09 lakh in June 2025, up from 25.46 lakh in June 2020, the report said.
Ashwini Kumar, senior VP and head (market data) said that equity MFs have captured significant inflows due to optimism about market recovery and growth, which is appealing for long-term retirement portfolios.
