Are retirement mutual funds better than SCSS for future-centric investing?

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SCSS vs retirement mutual fund: While both are imperative investment avenues, it’s important to understand which is better for retirement planning. spoke to experts to get an answer to this.

The Senior Citizens Savings Scheme (SCSS) is widely popular with investors, given its guaranteed income, tax deduction benefits and an interest rate of 8.2 percent. However, SCSS has fallen short of certain retirement savings schemes when compared on the basis of annualised returns over the past five years.  While SCSS yields have hovered between 7-8 percent, a retirement savings scheme has distinguished itself in its category with an annualised return of almost 15 percent.

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The numbers

According to Association of Mutual Funds in India (AMFI), the regular plan of the HDFC Retirement Savings Fund — Equity Plan has generated an annualised return of 15.36 percent over the course of five years.

In words of Abhinav Angirish, Founder,, “If someone had put Rs 15 lakh in the regular plan, the scheme would have produced a return of 13.36 percent over the last five years, which means that an initial investment of Rs 15 lakh would have grown to about Rs 28 lakh during this time.”