Tata Mutual Fund today announced the launch of India's first ever retirement specific mutual fund scheme with auto switch facility.
Called 'Tata Retirement Savings Fund,' the fund is a carefully structured suite of plans designed to meet the investment needs of investors in different age brackets.
It offers 3 unique options to investors 'Progressive Plan, ''Moderate Plan' and 'Conservative Plan' - with varied percentage of equity and debt assets.
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 challenge. With increasing life expectancy, one can assume a post retirement life of 30 years after 30 earning years. The challenge clearly is the ability to maintain the same life style post retirement.
Tata Retirement Savings Fund comes with a unique 'Auto-Switch' feature which does away the hassles of adjusting the equity-debt proportion with increasing age and the fund does the necessary asset allocation automatically as the investor crosses into a different age bracket.
Yet another unique feature of the fund is the 'Auto-Systematic Withdrawal' facility. This is designed with the objective of providing the investors with regular cash flows after they turn 60.
The 'Auto-Systematic Withdrawal' facility comes with two options of Monthly - 1 per cent of market value of investment as on date of completion of 60 years of age or Quarterly - 3 per cent of market value of investment as on date of completion of 60 years of age.
The Tata Asset Management philosophy is centred on seeking consistent, long-term results. Tata Asset Management aims at overall excellence, within the framework of transparent and rigorous risk controls.