Your approach towards your retirement planning is right. Additionally, your time horizon of 25 years works in your favour. As per the thumb rule of investing, your investment in debt assets should be the same as your age. So, if your age is 30, then you should invest 30% in debt market and so on.

The rationale behind this is that as you get older, you must invest more in low-risk assets and keep reducing your exposure to high-risk assets. This means that as you start ageing, your exposure to debt assets, which are relatively safer, should increase.

Based on your requirement, balanced funds or hybrid funds are best suited for your investment requirement.

While investing in mutual funds, there are 3 to 4 key factors one should study:

- Risk and volatility analysis

- Return

- Expense or exit load

- Fund manager’s profile

Principal Hybrid Equity fund has done well in past three years in this category.

Tata Retirement Savings fund has done well in past five years, but it also has lock-in period of five years. Since your investment horizon is for 25 years, you can consider it.