How Tata Retirement Fund - Progressive Plan Builds a Strong Base For Post Retire

Posted by Dishika Baheti on August 1st, 2018

The fulfillment of financial needs in the post-retirement era is the primary concern for a majority of the population in India. The financial planning of next 30 years of retirement can be done by building a strong base in the pre 30 years of retirement. Tata Retirement Savings Fund is a unique solution-oriented scheme which serves the objective of retirement planning efficiently. It has successfully provided a fruitful solution to its investors; as a result, it is considered one of the best retirement solution-oriented mutual funds in India.

Mechanism of the Fund

Tata Retirement Savings Fund is divided into three plans, namely progressive plan, moderate plan, and conservative plan. The three plans have different investment strategy based on the suitability of age slabs of the schemes. The progressive plan is designed for the investors of young earning age who can take the risk as the investment is projected for a very long term. It provides high returns through equity instruments and offers high risk. On reaching the age of 45, the plan is auto switched to moderate plan which is of slightly less risk and invests the corpus in the equity and debt to smartly balance the risk and return factor. On reaching the age of 60, all the corpus is automatically shifted to a conservative plan which aims to deliver stable and consistent appreciation to the gathered corpus by investing majorly in debt instruments. It has a very low-risk factor.

Features of Progressive Plan

Tata Retirement Savings Fund - Progressive Plan is a moderate risk open-ended scheme which seeks to muster the maximal corpus to solve the issue of retirement planning efficiently. It has been a terrific performer since its inception in November 2011 and has generated an annualised return of 17.74% after a rough start. In the last recent 5 years, it has produced an annualised return of 21.11% and 16.77% in last 3 years. As the fund managers have no bondage on the investments in equity instruments, it is compared with the S&P BSE Sensex as a benchmark. (Data as of 29th July 2018)

Fund Managers

The fund is managed by a highly talented fund management staff at Tata Mutual Fund. Three senior fund managers manage it.

• Sonam Udasi: He is a B.Com and PGDM and is managing the scheme since April 2016. He has work experience from successful financial firms like ASK Raymond James, JM Financial AMC, Prime Securities, Brics Securities, and IDBI Capital Market Services.
• Murthy Nagarajan: He has been managing the scheme for more than a year. He is an M.Com, ICWA and PGPMS. Before joining Tata AMC, he has worked with Quantum AMC, Mirae Asset Global Investments India.
  Ennette Fernandes: She is the recently appointed fund manager of Tata Retirement Savings Fund. She is a B.Com, PGDBM, and has worked previously with Philip Capital India Ltd.

Investment Portfolio

The corpus is invested in equity instruments with an aim to generate maximum returns without taking high risks. For this, the fund managers invest the majority of the corpus in large-cap companies and slightly more than a quarter of corpus is invested in mid-cap companies to generate maximum returns. The banking sector comprises the highest proportion of corpus which is followed by automotive, food & beverage, cons nondurable, and engineering sectors. (Data as of 29th July 2018)

The fund provides an option to auto switch between the moderate and conservative plans. As the fund aims to secure the post-retirement era, it charges an exit load of 1% for withdrawal until the investor reaches the age of 60. It is suitable for every earning individual due to its feasibility and straightforward strategy. Tata Retirement Fund provides the most comfortable retirement planning solution with SIP.