I have come across some retirement-specific mutual fund schemes. Should I invest in them for my retirement?
No, any investment which you are disciplined with and won't use until your retirement is effectively your retirement fund. All pre-packaged retirement plans come with some constraints in terms of their allocation. Even NPS where the maximum you can invest in equity can be 75 per cent isn't suitable for somebody who's 25- 28-year-old. I would like such young earners to be fully into equity.
In my opinion, if someone can save only Rs 1.5 lakh a year by investing in a tax-saving fund to get the 80C break and keeps on doing it, it can also act as one's retirement plan. If that is the only money you can invest, then even a 30-year plan to invest in ELSS can be your retirement corpus, which can be a sizeable one.