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What Are the Benefits of Investing in Tata Retirement Savings Progressive Plan?

In our country, people are either not aware about saving for retirement or do not have a proper retirement plan. Thus, Tata mutual fund has come up with a retirement plan for the salaried class of the country. Tata Retirement Savings Fund has three types of plans under one scheme, where plans will auto-switch after crossing an age. The age brackets of the fund are-

Progressive to Moderate - switch takes place once you attain the age of 45 years.

Moderate to Conservative - switch takes place once you attain the age of 60 years

The fund aims to increase the awareness among investors regarding savings for retirement so that they can enjoy a similar lifestyle even after retirement. As per the fund manager, Mr Sonam Udasi, it’s a plan that will work on the rule “Retirement ke pehle bhi, aur baad bhi.” So, let’s lookout at the features and benefits of investing Tata Retirement Savings Fund - Progressive Plan in the article further.

Snapshot of Tata Retirement Savings Fund - Progressive Plan:

Launched in the year 2011, the fund helps in decreasing the havoc caused by inflation to meet the needs of capital after retirement. It works as a retirement solution, changing the asset allocation according to the age of investor. In the progressive plan, investors who are below the age of 45 can invest. It invests the capital of investors majorly in equity, keeping 85% or more in equity and Equity-related schemes and the rest in debt as well as money market instruments. The AUM of the fund is Rs 518 Cr as on Jul 31, 2018, with an expense ratio of 2.80%.

Tata Retirement Savings Fund - Progressive Plan focuses on generating the long-term returns for the investors. It invests approximately 60% of its corpus and rests in mid and small-cap companies. It looks at the relative merits before investing in any stocks, evaluate opportunities across the market cap and invest accordingly in various themes, where it finds more growth.

Features and Benefits of Investing in Tata Retirement Savings Fund (G)

Only a minuscule per cent of Indians are aware about after retirement requirements and investing under the formal pension plans. Therefore, the fund house is aiming at increasing the general awareness among the people to have proper retirement planning and savings. The fund has a feature of withdrawing 0.5% of Retirement corpus on monthly or 1.5% on a quarterly basis. In this fund, you also can decide the amount of withdrawal as per your requirements and choices.

Keeping the portfolio turnover ratio of 73%, Tata Retirement Savings Fund growth has an average market capitalisation of Rs 62,350.47 Cr as on Aug 13, 2018. The fund has 46 shares currently in its portfolio and keeps churning the stocks if it feels that the trends are changing in the market. The highest holding presently in the fund is of the finance sector, which has been followed by FMCG, services, construction and automobile sector. There are many other sectors where the fund has allocated its assets, which are in small proportion. The fund managers Mr Udasi and Ms Fernandes follow the same investment philosophy for all the plans, providing weight to growth stocks.

Tata Retirement Savings scheme is an open-ended scheme with a minimum lock-in period of 5 years. In the past five years, CAGR of the fund was 22.56%, and the highest returns of the fund were in 2016 with 49.11%. The other annualised returns of the fund for the past five years are provided in the table below, which has been compared with its benchmark, NIFTY 50.

The fund has stumbled performance in these past years. Offering a various choice of asset allocation in a single scheme, it is based on life stage and risk preferences of the investors.


Looking for investment in Tata Retirement Savings scheme- Progressive Plan? The article above is providing essential details of the fund.

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