9 Oct 2011

Tata Mutual Fund's Retirement Saving Fund with Auto-Switch facility

Retirement Saving Fund by Tata Mutual Fund.

Recently the asset management arm of Tata Group has launched a new flexible retirement specific mutual fund with auto-switch facility to the investors. As per the scheme proposed by the company, this plan is tailor made for investors of different different age group, which has been categorised into 3 options with variable
equity and debt assets percentage. Those 3 plans are named as:

  1. Progressive plan
  2. Moderate plan
  3. Conservative plan
Tata MF

Basically the company is targeting this scheme for the investors around the age of 30. As per the company, the minimum initial investment for this retirement saving fund is Rs 5000 and the investors will have to pay Rs 500 per month minimum.

The most important feature of this mutual fund scheme is that the investors are directly being provided with the facility of auto-switch feature which will override away the hassles of adjustment of the ratio between equity and debt with the increase in the age of investors. Due to this auto-switch facility in this retirement saving mutual fund, the funds will be automatically allocated as per the increasing age of the investors, without the need of any mutual fund financial advisor.

The second most important feature of the Tata retirement saving fund is automatic systematic withdrawal. With the help of this facility the investors will get regular cash flow when their age reaches 60 years. This automatic systematic withdrawal is provided with two options to choose from that are

  1. Monthly: in this case the investors will get one percent of the market value of their investment at the time of reaching 60 years.
  2. Quarterly: in this case the investors will get 3 percent of the market value of investment at the time of reaching 60 years.

As per the company announcements, this scheme is open from October 7 to 21.
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