ICTACT Journal on Management Studies

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The Study of Mutual Funds For Retirement Planning


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1 Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, India
     

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Retirement planning should be ranked first in the priority list of everyone, yet, it is observed that people do not see retirement as a vital financial goal until late in life. This study recognizes the attitude of people towards retirement planning, their general financial literacy and perception towards mutual funds for retirement planning. The study also identifies mutual fund schemes from equity category and hybrid category which should be considered for investing with retirement as a financial goal. Data for primary research was collected through structured questionnaire. As a part of secondary research, data on several parameters of total 422 schemes belonging to 12 different categories is extracted from various sources. The schemes are then divided into quartiles or halves depending on the sample size and with the help of t-test the statistical significance of the parameters is tested to ensure whether they can be pursued further. The study found that there is lack of knowledge about financial literacy amongst people and It is noticed that acceptance of mutual funds for retirement planning is more in younger population as compared to older ones. 27 mutual funds schemes with better performance against their peers from respective categories have been shortlisted overall. Based on factors like financial goals and risk appetite of people of a particular age group different mutual fund schemes have been suggested.

Keywords

Retirement, Retirement Planning, Mutual Funds, Financial Literacy
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  • The Study of Mutual Funds For Retirement Planning

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Authors

Prajakta Mantri
Department of Management Technology, Shri Ramdeobaba College of Engineering and Management, India

Abstract


Retirement planning should be ranked first in the priority list of everyone, yet, it is observed that people do not see retirement as a vital financial goal until late in life. This study recognizes the attitude of people towards retirement planning, their general financial literacy and perception towards mutual funds for retirement planning. The study also identifies mutual fund schemes from equity category and hybrid category which should be considered for investing with retirement as a financial goal. Data for primary research was collected through structured questionnaire. As a part of secondary research, data on several parameters of total 422 schemes belonging to 12 different categories is extracted from various sources. The schemes are then divided into quartiles or halves depending on the sample size and with the help of t-test the statistical significance of the parameters is tested to ensure whether they can be pursued further. The study found that there is lack of knowledge about financial literacy amongst people and It is noticed that acceptance of mutual funds for retirement planning is more in younger population as compared to older ones. 27 mutual funds schemes with better performance against their peers from respective categories have been shortlisted overall. Based on factors like financial goals and risk appetite of people of a particular age group different mutual fund schemes have been suggested.

Keywords


Retirement, Retirement Planning, Mutual Funds, Financial Literacy

References