Planning your Retirement in the UAE? Here’s how Mutual Funds can help

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The hidden irony of our education system is that we are taught everything but not managing our finances. Personal finance management is an integral component of modern-day human life. Very often we prefer keeping their funds untouched in a bank account or worst case scenario we tend to overspend without thinking about the future.

Retirement planning is an extremely crucial activity that should be ideally done during the economically productive years of life. Retirement planning in the early years of economic productivity helps you to build a corpus so that you can spend your twilight years with ease and comfort.

Retirement is like a long vacation, you get all the time to travel, pursue your hobbies and interests, spend time with your loved ones and whatnot. Retirement days should be spent with comfort and peace. In order to enjoy your twilight years to the fullest, you need to start planning in advance.

Now the question arises, how do we plan to start planning for our retirement? It’s quite simple.

Start investing periodically in well-structured and organized investment plans like mutual funds in UAE. Although the market is filled with a wide variety of investment tools like ETFs, Government bond schemes, pension plans, stocks, etc. Recent studies and statistics are evident that investing in mutual funds in UAE via SIP (systematic investment plan) over a long time horizon is one of the best ways to create and accumulate wealth for your retirement. Equity oriented mutual funds in UAE offer lucrative returns and is effective to provide a hedge against inflation.

Investing in mutual funds in UAE allows investors to diversify their investment portfolio and select alternate investment vehicles that suit their financial goals and risk tolerance capacity. Ideally, retirement planning should be done in the early stages of life so that you’ve got ample time to accumulate wealth for your twilight years.

Mutual fund investments are diverse and offer a broad variety of products based on the investors existing financial portfolio. Retirement planning carried out using the SIP approach of mutual fund in UAE is probably the best way to enjoy the long term returns and benefits of investments after retirement. Investors can choose between equity and debt-oriented mutual funds in UAE based on their investment approach. Investors looking for aggressive returns can opt for equity-based mutual funds on the other hand; investors with a conservative approach looking for moderate levels of returns can opt for debt-oriented funds.

Decoding SIP approach

SIP approach or systematic investment plan approach can essentially be the solution to your retirement planning. It is one of the most popular and user-friendly investment vehicles not just in the UAE but all across the globe. Investors can begin their investment with amounts as low as AED 200.SIP allows investors to allocate a small portion of their income periodically to build a corpus for retirement. Mutual funds in UAE are highly flexible and allow investors to switch between different funds during the course of the investment. Furthermore, investors have the privilege to reduce or increase the number of their mutual fund investments in UAE. Young investors with a high-risk tolerance capacity can receive lucrative returns through SIP. A mutual fund in UAE is liquid in nature i.e. investors can withdraw specific amounts monthly, quarterly or annually which enhances its utility as an investment tool to build a corpus for your retirement.

Building a Corpus for Retirement via SIP

From the perspective of building a corpus through SIP, investors should start investing at an early age. The right way to accomplish your financial goals using mutual funds in UAE begins with calculating and assessing your current expenditure. In order to reach a realistic figure, investors can consider an inflation rate of 10 percent. The figure that you’ve reached would be the sum you would need after 25 or 30 years.

The next step in retirement planning using SIP is to figure out how much money you would actually need to spend your retired life the way you want to. Investors can refer to their current lifestyle to assess the figure they would need to fund their twilight years. By any chance, if you are unable to assess the amount you can always consult a financial expert or advisor who will analyze your current financial portfolio and requirements and help you to reach a numeric figure. However, the right alternative to this problem is to save approximately 30 percent of your current income. Building up an investment portfolio via mutual funds in UAE can be a challenging task. Investors can shortlist a few funds based on the appetite for handling risks and rate of return. To accumulate enough wealth for funding your retirement years the time horizon of the investment should be long term.


The central idea behind successfully building a corpus for your twilight years using mutual funds in UAE is to start planning and executing as early as possible. The right mutual funds in the UAE for building a corpus for retirement are the ones that are stable and low in cost.

While choosing the right mutual fund investors should evaluate the ROI factor i.e. return on investment and the risk-return relation the fund offers. Mutual funds are transparent and user-friendly investment vehicles that are highly suitable for retirement planning in UAE.

Mutual funds in the UAE have something for every investor. The return potential of different mutual funds varies on the risk investors are willing to take. Hence, it is extremely crucial to assess the risk to return components before choosing mutual funds in UAE for retirement planning.

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