Best mutual funds for senior citizens- Retirement planning involves a balanced strategy of income generation and capital protection. For Indian senior citizens, hybrid funds that combine equity and debt can provide growth opportunities while controlling risk. In 2025, some hybrid and multi‑asset funds are notable for their stable performance and appropriate risk profiles. Here, we examine the top mutual funds for senior citizens in 2025, along with 3‑year annualized returns and risk levels.
Senior citizens typically look for investments offering regular returns, moderate growth, and capital safety. Hybrid and multi‑asset mutual funds, which invest across equities, debt, and occasionally gold, can fulfill these needs by providing diversified exposure. By investing in the correct funds, retirees may be able to increase their corpus while minimizing market volatility.
Best Mutual Funds for Senior Citizens in 2025
| Fund Name | 3‑Year Annualized Return | Risk Level |
|---|---|---|
| JM Equity Hybrid Fund | 23.03% | Very High |
| HDFC Balanced Advantage Fund | 20.35% | Very High |
| ICICI Prudential Multi‑Asset Fund | 19.25% | High |
| Quant Multi Asset Fund | 19.00% | High |
| ICICI Prudential Retirement Fund – Hybrid Aggressive Plan | 18.59% | Moderately High |
| Mahindra Manulife Aggressive Hybrid Fund | 16.48% | Moderately High |
| HSBC Equity Savings Fund | 12.41% | Moderate |
| Sundaram Equity Savings Fund | 12.03% | Moderate |
Data as of February 10, 2025
Overview of Best Mutual Funds for Senior Citizens
JM Equity Hybrid Fund
- 3Y Annualised Returns – 23.03%
- Carries very high risk
- Minimum SIP Amount – Rs 100
- Assets Under Management (AUM) – Rs 762.93 crore
- 74.6% of the funds allocated to equity, 19.4% to debt and 6.1% held as cash
- Expense Ratio – 0.70%
- Inception Date – April 1, 1995
HDFC Balanced Advantage Fund
- 3Y Annualised Returns – 20.35%
- Carries very high risk
- Minimum SIP Amount – Rs 100
- AUM – Rs 95,521 crore
- 53.7% of the funds allocated to equity, 30.1% to debt and 14.8% held as cash
- Expense Ratio – 0.78%
- Inception Date – September 11, 2000
ICICI Prudential Multi-Asset Fund
- 3Y Annualised Returns – 19.25%
- Carries high risk
- Minimum SIP Amount – Rs 100
- AUM – Rs 51,027 crore
- 48.2% of the funds allocated to equity, 16.8% to debt and 22% held as cash
- Expense Ratio – 0.70%
- Inception Date – October 31, 2002
Quant Multi Asset Fund
- 3Y Annualised Returns – 19%
- Carries high risk
- Minimum SIP Amount – Rs 1,000
- AUM – Rs 3,201 crore
- 54.2% of the funds allocated to equity, 10.5% to debt and 22% held as cash
- Expense Ratio – 0.74%
- Inception Date – March 21, 2001
ICICI Prudential Retirement Fund Hybrid Aggressive Plan
- 3Y Annualised Returns – 18.59%
- Carries moderately high-risk
- Minimum SIP Amount – Rs 100
- AUM – Rs 747.48 crore
- 84% of the funds allocated to equity, 13% to debt and 2.8% held as cash
- Expense Ratio – 0.94%
- Inception Date – February 27, 2019
Mahindra Manulife Aggressive Hybrid Fund
- 3Y Annualised Returns – 16.48%
- Carries moderately high-risk
- Minimum SIP Amount – Rs 500
- AUM – Rs 1,522.49 crore
- 76.4% of the funds allocated to equity, 21% to debt and 2.6% held as cash
- Expense Ratio – 0.52%
- Inception Date – July 19, 2019
HSBC Equity Savings Fund
- 3Y Annualised Returns – 12.41%
- Carries moderate risk
- Minimum SIP Amount – Rs 500
- AUM – Rs 645.63 crore
- 37.1% of the funds allocated to equity, 23.2% to debt and 39.7% held as cash
- Expense Ratio – 0.61%
- Inception Date – October 18, 2011
Sundaram Equity Savings Fund
- 3Y Annualised Returns – 12.03%
- Carries moderate risk
- Minimum SIP Amount – Rs 100
- AUM – Rs 1,051.39 crore
- 33.7% of the funds allocated to equity, 24% to debt and 42.3% held as cash
- Expense Ratio – 0.75%
- Inception Date – January 2, 2013
Why These Mutual Funds Are Suitable for Senior Citizens
- Balanced Risk‑Return Profile
Multi‑asset and hybrid funds combine equity appreciation with debt stability, best for retirees who want moderate returns with minimal risk. - Regular Income Potential
Several of these funds provide dividend options or systematic withdrawal plans to deliver consistent cash flow for retirees. - Diversification Across Assets
Investing in equities, debt, and occasionally gold, these funds reduce sector‑specific risks and the risk of inflation. - Professional Management
Veteran fund managers reallocate assets according to market conditions, preserving capital during declines and taking positions in growth during rises.
Key Considerations for Senior Citizen Investors
- Risk Tolerance: Evaluate your comfort with market fluctuations. Funds classified as “Very High” need a longer horizon and higher risk appetite.
- Expense Ratio: Lower fees can add to net returns, particularly for retirees who depend on fund payouts.
- Tax Implications: Dividend payouts are taxed at slab rates; long-term capital gains above ₹1 lakh attract 10% tax. Tax-efficient withdrawal strategies should be considered.
- Liquidity Needs: Choose funds with smooth redemptions with no exit loads, providing access to money at times of need.
Final Thought
For retirees in 2025, hybrid and multi‑asset mutual funds provide an attractive combination of income, growth, and risk management. The funds mentioned above—spanning high‑growth JM Equity Hybrid to moderate‑risk equity savings funds—serve various needs and risk profiles. By choosing funds that match your financial objectives and withdrawal needs, you can create a sustainable retirement portfolio that balances stability with the potential for decent returns.
Learn More:
- Difference in Expense Ratio Between Direct and Regular Mutual Funds
- Best Small-Cap Index Funds
- 10 Debt Mutual Funds That Outperformed in the Last 1 Year with 10% to 24% Returns in 2025
Disclaimer: Past performance is not indicative of future returns. Please consult a financial advisor before making investment decisions.
