Life cycle funds: A new category, but do they fit your portfolio needs?
Last Update Date: 05-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar pointed out that these funds still face equity volatility in early years and interest-rate swings later, and said investors should check whether they may need the money within the three-year exit-load period.
More of Abhishek's views on mutual funds
Business Standard explains life cycle funds, a mutual fund category Sebi introduced in February 2026. Each fund targets a maturity year and shifts from growth assets towards conservative ones along a set glide path. The piece covers the behavioural and tax benefits, the drawbacks, including a steep early exit load, who may find them useful and what to check.
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Life cycle funds: A new category, but do they fit your portfolio needs?