Your money: Retirement schemes for low-risk investors

The three-year and five-year returns are 20.97 and 15.47 per cent annually

Investment advisors seldom recommend retirement schemes of mutual funds (MFs), though these are long-term products. Investor also get a tax deduction when they invest in these funds, the way they do in an equity-linked savings scheme (ELSS). 

There is also a longer lock-in, of five years. Some from the MF sector feel this is a positive. "The long lock-in allows fund managers to take a longer-term view while managing these portfolios," says Suraj Kaeley, group president-sales and marketing, UTI MF. He adds that the hybrid nature of these funds helps to curtail volatility.

Some think these funds are suited for investors