With a well-constructed mutual funds portfolio, we will be able to devise a retirement goal that will provide us with a higher rate of return. The portfolio that has the combinations of diversified equity funds and Income funds will meet the requirement to plan and build a long-term retirement goal. Such a portfolio generates tax efficient returns from the capital gains point of view at the time of retirement. However, we should monitor the performance of the portfolio and make timely adjustments to optimize and generate more returns. This includes re-balancing of portfolio from time to time just to ensure right kind of allocation of assets towards the objective of retirement goal.