Which is the best pension plan?

Can you suggest the best pension plan for me?
- Sravani Mogalla

It seems, you are talking about pension plans from insurance companies. Are you looking for an investment product to build a corpus for your retirement? We do not recommend insurance products for investment purpose. We like to keep insurance and investment needs separate. Products with insurance and investment elements in them mostly fail on both counts: they offer very little insurance cover and they are also not great investment products.

We ask investors to buy a term insurance plan to cover their life and invest in equity mutual fund schemes to meet their long-term financial goals like retirement, child's education, etc. If you are planning to build a retirement corpus, you can consider investing the money in a staggered manner in one or two diversified equity schemes.

Here is a list of best diversified equity schemes.

This article was originally published on December 08, 2015.