“The question isn't at what age I want to retire, it's at what income.”
The quote above is an expression that retirement age is not fixed, it is unique and particular for everyone. People should retire when they feel that they have means to live the rest of the life comfortably and happily without the fear of facing any financial crisis. To support an investor’s financial needs, Reliance Mutual Fund has come up with a retirement planning plan, i.e., Reliance Retirement Fund; as here they believe that retirement is one of the most important life-stages.
The fund offers investment benefits in equity and tax exemption under Section 80C. It aims to provide capital appreciation and consistent income to its investors which will be in line with their retirement goals by investing in a mix of securities comprising of equity, equity-related instruments, and fixed income securities
Features of the Fund:-
- It is an open-ended scheme, therefore an investor can invest in the fund anytime.
- It was the first notified equity pension scheme to come to the investors.
- An equity-oriented balanced scheme where the equity exposure can increase up to 65-100% and the debt exposure may go from 0-35%.
- The scheme can be used to accumulate the retirement corpus where the equity exposure is at higher levels.
- The lock-in period is of 5 years which is not applicable to switch in-within funds.
- The exit load of the scheme is 1% and applicable when an investor wants to withdraw within 60 years of the age.
- Indian residents and NRIs are also allowed to invest in the scheme.
- It offers “Auto Transfer Facility,” which means the accumulated corpus will be moved automatically from wealth creation scheme to income generation scheme once you reach the age of 50 years or the on the date specified by the investor.
Sanjay Parekh- Mr.Sanjay Parekh is a B.Com (H) and Chartered Accountant. Before joining Reliance Mutual Fund, he has worked with ICICI Prudential MF, Ask Investments Managers, Prabhudas Lilladher, Sunidhi Consultancy Services, Insight Asset Management and Capital Market Magazine.
Anju Chhajer: Ms. Chhajer is a B.Com (H) and a Chartered Accountant and before joining Reliance Mutual Fund Ltd. as a fund manager, she has worked with National Insurance Company as a Money Maker Instruments and D.C Dharewa & Co.
Portfolio Allocation- Reliance Retirement Fund has asset allocation where 65% of the total assets are invested in equity instruments and 35% in debt and other money market instruments.
Who Should Invest in?
Reliance Retirement Fund is the most suitable option for the investors who are seeking:-
- long-term growth with a good capital appreciation
- Want to invest primarily in equity and equity related instruments and the remaining balance in fixed income securities, so as to fulfill the retirement goals.
Since inception in 2015, the fund has depicted astounding performance and in the past 2 years, it has shown a great hike in its returns. It is a new fund but still, it is growing with a rapid pace like in 2017, it has delivered really shocking returns of 37.81% against its benchmark, i.e., NIFTY 100 whose returns were at 31.05%. This shows, it has the potential to fulfill all the needs of retirement in the long-term.
Those investors who want to achieve long-term growth on the invested capital and can stomach moderately high risk can plan to invest in this fund. Before making any decision, it is advisable to consult your financial advisor.
This article is having all major information about the portfolio build up and performance of Reliance Retirement Fund.