chief U K Sinha had urged fund houses to launch pension products.
Mutual Fund has filed an offer document with SEBI to launch Reliance Retirement
Fund, an open ended notified tax savings cum pension scheme.
would be the third pension fund in the mutual fund industry. Templeton India
Pension Plan launched in 1997 manages Rs. 217.50 crore as on May 2012. UTI’s
Retirement Benefit Pension Fund launched in 1994 manages Rs 801 crore as on May
2012. Both schemes offer tax benefits of up to Rs 1 lakh under section 80 C of
the Income Tax Act.
Retirement Fund will aim to provide capital appreciation and consistent income
which will be in line with their retirement goals by investing in a mix of
securities comprising equity, equity related instruments and fixed income
benefits as per the current applicable rule are available. We will be
separately applying as and when the pension benefits are also extended to
mutual funds. The Retirement Fund will also be a part of it,” says Sundeep
Sikka, CEO, Reliance Mutual Fund.
scheme will get tax benefit (up to Rs. 1 lakh) as a Notified Pension Fund U/S
80C of Income Tax Act 1961, subject to fund being notified by the Central
Government under Section 80C(2) (xiiic) of the Income Tax Act 1961.
fund comes with two options - Wealth Creation Plan and Income Generation Plan. Benchmarked
against BSE 100, Wealth Creation Plan will invest a minimum of 65% of its
assets in equities and a maximum of 35% in debt and money market securities.
Income Generation Plan, benchmarked against Crisil MIP Blended Index, will
invest a minimum of 5% and a maximum of 30% in equities and a minimum of 70%
and a maximum of 95% in debt and money market securities.
fund will carry an exit load of 1% if redeemed/switched out before attainment
of 60 years of age. Transfer from Wealth Creation Plan to Income Generation
Plan will not attract any exit load.
scheme comes with a lock-in period of five years. The minimum application
amount under lump sum is Rs 5000 and Rs 500 through monthly SIPs. The fund will
be managed by Sanjay Parekh, Anju Chajjer and Jahnvee Shah.