Mutual funds have been asking for a pension plan with an exclusive tax deduction for a long time. Some mutual fund players are hopeful that the government may finally allow it in the coming budget. "We are hopeful that the government would allow a pension plan. This will help us to offer a long-term retirement plan," said a senior mutual fund official.
Currently, some mutual fund houses like UTI, Franklin, Reliance, HDFC, Tata, etc. offer retirement plans that qualify for tax deductions under Section 80C of the Income Tax Act.