There is a horde of objectives that a person seeks to accomplish through his investments. It could be buying a car, paying for his children’s college education or for funding his own business. Apart from these cliched objectives, retirement planning also holds a crucial spot in the list of “Why Am I Investing in Mutual Funds?”
Investing in mutual funds is a great way to secure the second innings of your life, where you won’t be dependent on anybody for your survival and could comfortably live on your own savings. TATA Retirement Savings Fund is an option designed specifically to provide long term financial security to investors, thus catering to their retirement planning goals and objectives.
In this article, a detailed overview on TATA Retirement Savings Fund (G) has been presented, in order to make the readers aware of better options available in the market that could help them empower their retirement planning.
The Preface
TATA Retirement Savings Fund, by its nature, is an equity-oriented hybrid fund. Hybrid Funds are important tools for infusing strength to the investment portfolio, as they add appropriate amount of diversification. This reduces the overall risk of the portfolio and enhances its performance rate under different market conditions.
TATA Retirement Fund is a new addition to the market by one of the largest and highly respected asset management companies in India, TATA Mutual Fund. Since its launch on November 1st, 2011 it has established a good name for itself in the market and have snuck into the league of the best balanced funds to be invested in the modern day India.
The Investment Strategy
Belonging to the Hybrid Mutual Fund category, TATA Retirement Fund (G) involves a judicious allocation of funds involving both Equity and Debt. As of today, 79.7% of the total capital remains invested in the Equity and equity-related instruments, about 7% in Debt, and the rest is devoted to cash and cash equivalents. However, this distribution is not static and is rebalanced from time to time by the fund managers upon requirement.
Sector Wise Distribution of Assets
In order to incorporate diversification in the portfolio, TATA Retirement Equity Fund (Growth) invests the investors’ capital across several industry sector that are currently booming in the market. The top five industry sectors that constitute the portfolio of this fund are listed below, together with their weights and value: -
The Performance History
It is a well-known fact in the market that it takes a good amount of time, mostly 5-10 years, for a fund to cross the break even stage and start producing handsome returns for its subscribers. However, the case with TATA Retirement Equity Fund (Growth) is an exception. In a mere pan of two and half years since its launch, it shot to national fame due to its remarkable performances in the bullish market and a relatively stable position during the market downtime.
The past five year record of its performance has been summed up and jotted down below, which will help you to understand its yielding capacity in a better way. Have a look: -
The Investment Essentials
There are two methods of investing in mutual funds, lumpsum and SIP. TATA Retirement Fund (Growth) permits both of them, where the minimum investment amount in the former has been set at Rs. 5,000, while the limit has been fixed at Rs. 500 for the latter option.
A point to be noted while investing in this fund is that it doesn’t allow any redemption to the investor before he has attained the age of 60 years. Violating this condition will make him liable to pay an exit load of 1%, calculated on the value of the investments standing on the date of such redemption.
The Ending Note
If you are new to the world of mutual fund investing and are looking forward to make objective-based investing, which is primarily saving for your retirement, then it’s suggested that you consider investing in TATA Retirement Savings Fund. The built of this fund is quite impressive and the returns grappled by it over the past five years also seem quite fine.
Find out about the investment strategy, the performance history, and the current asset distribution followed at TATA Retirement Savings Fund.
Dishika is an independent content writer, and is working as an advisor for social media marketing at MySIPonline. In addition, creating blogs on mutual funds and related topics is his forte.