Axis has already filed its offer document; DSP BlackRock, HDFC and SBI to launch funds over the next two months
Three fund houses—DSP BlackRock, HDFC Mutual Fund and SBI Mutual Fund—have initiated their plans to launch life-cycle products. As reported by Cafemutual (please see: http://www.cafemutual.com/News/InnerNews.aspx?srno=1034&MainType=New&NewsType=AMC), Axis Mutual Fund has already filed its offer document for Axis Life Plan. These schemes are called ‘life-cycle’ products because they seek to generate a targeted amount over a specific time period for an identified goal like a retirement corpus or a child plan. The investment is linked to the time period between the current date and the target date of the scheme.
These investments are conservative in nature and reduce risk as they approach their target dates. The scheme will have four different plans—Plan 2020, Plan 2025, Plan 2030 and Plan 2035. Each plan will have a different portfolio. “We had filed the offer document in January but SEBI asked for some clarification in the product. We are waiting for SEBI approval,” said Rajiv Anand, MD and CEO of Axis AMC.
DSP BlackRock, HDFC and SBI are planning these products mainly to generate retirement plans. Officials from these fund houses told Cafemutual that they are still in the process of planning the product and plan to file the offer document in the next two months. “We are looking at filling the offer document for a life-cycle product in the next two months. These products help the investor to carry out asset allocation easily without any assistance,” said an official from DSP BlackRock.
AMCs
have started focusing on life-cycle products after SEBI’s
International Advisory Board (IAB) in its first meeting in February had suggested that fund houses introduce more life-cycle
products alongside their plain vanilla products.
“We are working on some life-cycle products and we are planning to launch them soon. It will be a series of products that will cater to specific goals,” said Srinivas Jain, CMO, SBI Mutual Fund.
