Tata Mutual Fund, an asset management arm of Tata group is looking to tap self-employed professionals, working employees and small business owners for its latest retirement savings fund, which was launched on October 7.
The first of its kind mutual fund, Tata Retirement Savings Fund will target young and middle aged working generation. The fund would provide auto switch facility between its three plans, progressive (higher exposure to equities), moderate (mix exposure to equities and debt) and conservative (higher exposure to debt instruments).
"Currently, we are not looking at numbers, but we are more interested to spread awareness among the investors about this product. Self-employed professional would benefit the most from this product," said Sanjay Sachdev, president and CEO, Tata Asset Management Ltd.
Adding further he said, "It's time that India's working class seriously started planning for retirement savings. Retirement savings market is at nascent stage in India, while in the US it is about US $ 12 trillion."
The company, which has assets under management worth Rs 22,633 crore (average for the quarter ended September 2011) is strengthening its existing network of 85 branches.
"Success of such product would depend more on planning and education about the financial products among the investors. We see western region more educated in the country. However, our focus for marketing will be pan-India," said Sachdev, who was in Ahmedabad to promote the new fund offer.
Tata MF's latest retirement savings fund is considered as a tailor-made solution for the investors to support the monetary needs of the investors post their retirement. The minimum investment amount required for the NFO is Rs 5,000, while for the systematic investment plan (SIP), the amount is Rs 500 per month.