Rs 15 lakh in SCSS vs Retirement Funds: Which will give more returns in current market conditions

World Senior Citizens Day 2024: In the realm of financial planning, it is widely accepted that as individuals reach their 60s, a prudent adjustment to their investment portfolio involves a shift towards low-risk assets, such as fixed deposits, government-backed savings schemes and cash holdings, while reducing exposure to higher-risk investments like stocks and mutual funds. This strategic approach is upheld by a majority of financial advisors, who emphasize the continued relevance and value of this guideline.

Like, the Senior Citizen Savings Scheme (SCSS) provides a secure investment avenue for individuals. This scheme, supported by the central government, aims to offer a risk-free savings option. Specifically designed for individuals aged 60 and above, the SCSS ensures a reliable source of income for investors during the investment tenure.

Here's a quick comparison between SCSS and top Retirement Funds

> Senior Citizen Savings Scheme

Principal amount: Rs 15 lakh
Investment period: 5 years
Interest rate: 8.2%
Total maturity amount: Rs 21,15,000
Total interest earned: Rs 6,15,000
Quarterly interest credit: Rs 6,15,000/20= Rs 30,750

Retirement funds

1. HDFC Retirement Savings Fund - Equity Plan

AUM: Rs 5,852 crore
Minimum investment: Rs 500
Current Value: Rs 12.76 lakh
Return (p.a): + 30.74%
Risk: Very High

Principal amount: Rs 15 lakh
Investment period: 5 years
Profit: Rs 35.65 lakh
Total corpus: Rs 50.65 lakh
Absolute return: 237.68%

2. Nippon India Retirement Fund - Wealth Creation Scheme EQUITY
AUM: Rs 3,453 crore
Min. Invest: Rs 500
Current Value: Rs 11.64 Lakh
Return (p.a): + 26.87%

Principal amount: Rs 15 lakh
Investment period: 5 years
Profit: Rs 23.26 lakh
Total corpus: Rs 38.26 lakh
Absolute return: 155.08%

3. Tata Retirement Savings Progressive Plan
AUM: Rs 2,100 crore
Min. Invest: Rs 500
Current Value: Rs 10.78 Lakh
Return (p.a): + 23.66%

Principal amount: Rs 15 lakh
Investment period: 5 years
Profit: Rs 23.68 lakh
Total corpus: Rs 38.68 lakh
Absolute return: 157.86%

4. HDFC Retirement Savings Fund - Hybrid Equity Plan
AUM: Rs 1,556 crore
Min. Invest: Rs 500
Current Value: Rs 10.45 Lakh
Return (p.a): +22.37%

Principal amount: Rs 15 lakh
Investment period: 5 years
Profit: Rs 23.01 lakh
Total corpus: Rs 38.01 lakh
Absolute return: 153.42%

5. Aditya Birla Sun Life Retirement Fund - The 30s Plan

AUM: Rs 403 crore
Min. Invest: Rs 500
Current Value: Rs 9.91 Lakh
Return (p.a): + 20.17%

Principal amount: Rs 15 lakh
Investment period: 5 years
Profit: Rs 19.15 lakh
Total corpus: Rs 34.15 lakh
Absolute return: 127.66%