I want to invest lumpsum amount in the best pension plan

You have not provided sufficient details. There are broadly three types of retirement plans in the market.

1. Life Insurance Retirement Plans


2. Mutual Fund Retirement Plans


3. National Pension Scheme

Since you want to invest in lump sum, National Pension Scheme is not applicable for you.

Life Insurance Pension Plans: Life insurance companies also offer retirement products. Life Insurance retirement plans can be both traditional and unit linked. If you are a conservative investor, then you can opt for traditional life insurance pension plans. Since you want to invest in lump sum you will have to go for single premium plans. The historical returns of traditional life insurance pension plans are low. For example, LIC’s Jeevan Akshay VI a single premium deferred annuity product gives an average return on investment of around 7%. You should note the annuity is taxable, so your post tax returns are lower. The returns of unit linked pension plans are market related, but compared to mutual fund retirement products the costs are high in the initial years.

Mutual Fund Pension Plans: There are as of now, 4 mutual fund retirement schemes. We have discussed these schemes in our article, Is Mutual Fund Retirement Plans suitable for you. You can go through the article and select a scheme which suitable for your risk profile and investment goal in consultation with your financial advisor.