Recently, TATA Mutual Fund announced to launch a Retirement Fund. TATA Retirement Fund is an open ended fund. Investors can put their money into the new fund offer (NFO) to make a minimum investment of Rs. 5000.
An online news portal about business and economy quotes a statement about the TATA Mutual Fund, “The objective of the Fund is to provide a financial planning tool for long term financial security for investors based on their retirement planning goals.”
So, TATA Retirement Fund is aimed to provide a financial planning tool for long term financial security for investors based on their retirement planning goals.
Further it adds, “The Tata Retirement Fund would offer investors option to invest under three plans — Progressive Plan, Moderate Plan and Conservative Plan. The schemes would offer growth option.
The performance of schemes would be benchmarked against BSE Sensex, Crisil Balanced Index Fund and Crisil MIP Blended Index respectively.
While the ‘Progressive’ and ‘Moderate’ Plan would invest majority of its corpus in equity schemes, Conservative Plan would have higher exposure in debt securities.
The fund would provide an investment tool for retirement planning of investors, depending upon their risk appetite.
The earnings of the fund from domestic investments are exempt from income tax.”
There are 3 plans for investors in TATA Retirement Fund – Progressive Plan, Moderate Plan and Conservative Plan. These plans would be benchmarked against BSE Sensex, Crisil Balanced Index Fund and Crisil MIP Blended Index.
Majority of its corpus will be invested in equity schemes. The earnings of TATA Retirement Fund from domestic investments are exempt from income tax as per the statement.
Retirement Fund of TATA Mutual Fund is being recognized as the best fund like Capital Protection Funds of SBI Mutual Fund.
