Tata Retirement Savings Fund is a carefully structured suite of plans designed to meet the investment needs of investors planning for retirement. It works as a retirement solution by offering choice of asset allocation to investors based on their life stage and risk preference.
Asset Allocation
| Plans | Indicative Allocations | ||
| Equity | Debt | Other | |
| Progressive | 85-100 | 0-15 | 0-10 |
| Moderate | 65-85 | 15-35 | 0-10 |
| Conservative | 0-30 | 70-100 | 0-10 |
Who should invest / Key Attributes
Ideal for Investors:
- Investors keen to save for retirement
- Follow an life cycle based approach to retirement savings
- Salaried employees looking for regular savings avenue for retirement
- Self-employed who usually don’t have post retirement benefits accruing to them
- Investors seeking an alternative to traditional retirement saving avenues
Key Attributes:
Unique Auto-Switch facility:
Tata Retirement Savings Fund offers a unique “Auto Switch” feature which takes away the hassles of adjusting the equity – debt proportion with increasing age. So if the investor starts an SIP in the “Progressive” plan opting for the Auto Switch Feature, automatically the fund will do the needful as the consumer crosses different age brackets as explained below:-
- Progressive to Moderate – switch happens once the invest tor attains the Age of 45yrs.
- Moderate to Conservative – switch happens once the investor attains the Age of 60yrs. However the fund also provides the option of staying perpetually invested in a single plan of choice.
Unique Auto-SWP facility:
Once investors retire they need a regular flow of money to fund their expenses. While salary does stop post retirement, annuities and pension form a major part of their regular cash flow. The unique “Auto Systematic Withdrawal Plan” works like an annuity on the investor attaining the age of 60. There are 3 options of Auto SWP facilities
- Monthly – 0.5% of market value of investment as on date of completion of 60 yrs of age
- Quarterly – 1.5% of market value of investment as on date of completion of 60 yrs of age
- Investors also have an option to withdraw a flat amount with the minimum amount being Rs.500 and in multiples of Rs.500 on monthly basis.
Systematic Withdrawal plan provides regular outflow of money fixed on the basis value of investment on the date on which the investor completes the age of 60. It does not provide any guarantee of returns or capital protection and or return of principal. This feature should not be considered as annuity facility.
Load Free Switch facility:
One can move between the different plans without paying any applicable loads for a maximum 6 times during the life of the investment (option available only after completion of 5yrs from Date of Allotment). If switch-out is done before 5yrs or more than 6 occasions then the same will be subject to applicable exit loads.
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Regards.
