Tata Retirement Savings Fund offers a choice of three plans and comes with an annuity type feature
NFO Period: October 07, 2011 to October 21, 2011
Investment mandate: the fund is a retirement specific mutual fund which has been structured to meet the investment needs of investors in different age brackets. It offers three options - progressive plan, moderate plan and conservative plan with varied percentage of equity and debt assets.
The scheme also has the ‘auto-switch’ feature which automatically adjusts or switches the equity-debt proportion with increasing age.
Another feature of the scheme is the ‘auto-systematic withdrawal’ facility. This provides investors with regular cash flows after they turn 60. The facility comes with two options of monthly -1 per cent of market value of investment or quarterly -3 per cent of market valuation.
Sanjay Sachdev, President and CEO, Tata MF says, “Tata Retirement Savings Fund is specifically designed keeping in mind the young and middle aged working generation. The fund is tailor made to support the monetary needs of investors post their retirement so that they can meet the 30:30 challenges. With increased life expectancy, one can assume a post retirement life of 30 years after 30 earning years. The challenge is the ability to maintain the same life style post retirement.”
Distribution: The fund will be distributed through IFAs, stock exchange platforms, banks and national level distributors.
Exit load: It carries a 5 per cent exit load if redeemed within one year, 4 per cent if redeemed between 1 and 2 years, 3 per cent if redeemed between 2 and 3 years, 2 per cent if redeemed between 3 and 4 years, 1 percent if redeemed after 5 years from the date of allotment.
Minimum Subscription: The minimum subscription is Rs. 5,000 and through SIP the minimum monthly subscription is Rs. 500.
Benchmark: For progressive plan - Sensex, for moderate and conservative - Crisil.
Existing Retirement Schemes in the MF industry: Presently there are two (open-ended) retirement savings schemes in the market.
