Tata Mutual Fund on Friday launched the Tata retirement savings fund, its first-ever retirement specific mutual fund scheme with auto switch facility, in Andhra Pradesh. The open-ended scheme is aimed at providing a financial planning tool for long financial security based on retirement planning goals.
The fund offers three options to investors — progressive, moderate and conservative plans — with varied percentage of equity and debt assets. The progressive plan would have more equity exposure and the conservative would have less.
The number of senior citizens have gone up from 71 million in 2001 to 100 million in 2011, which is 14 per cent of the total population.
Usually, a mutual fund investors exits from the market on an average of 3-4 years, here our goal is to keep them invested for a longer duration to get better output from the equity market, said Bhupinder Sethi, co-head (equities), Tata Asset Management.
The minimum investment amount for the fund is Rs 5,000 along with an SIP option that entails a minimum Rs 500 per month. The new fund offer (NFO), which opened on Friday, will close on October 21. The fund's auto-switch option adjusts the equity-debt ratio proportion with increasing age.