Retirement is the time when a person wants to relax and enjoy his time without any big responsibility, but due to a lack of financial planning, many people stray from this pleasure. Now, many people say that the reason they can't do retirement planning is because their salary is low, and the second most common reason is that they don't have the time for investing in these plans due to their 9 to 6 jobs. Well, they don't have to worry anymore as there is a solution for both their problems and the name of that solution is Tata Retirement Savings Fund Progressive Plan. Let's have a look at what this scheme holds for your future.
What Is this Scheme?
This is an equity multi cap scheme which was launched on Nov 1, 2011, with the objective to provide investors with a financial planning instrument in which they can invest for long-term and can achieve their retirement planning goals. In this scheme, there are various auto switches which are done when you attain a particular age. At first, you choose a progressive plan which is equity oriented and invest around 85% of the total fund in equities. After you attain an age of 45 years, you corpus will be transferred to the moderate plan, which is a hybrid scheme and invest in a mix of debt and cash instruments, and when the investor attain an age of 60 years, the funds will be transferred to the conservative plan which invests predominantly in debt and cash instruments. This auto-switch is an optional feature, which is done by analyzing the risk appetite of an investor according to his age. Now, let's have a look at the key parameters of this scheme.
Currently, Tata Retirement Savings Fund Progressive Plan Nav is Rs 28.97 (as on Jul 19, 2018), and the asset under management as recorded on Jun 30, 2018, are worth Rs 475 crores. It has an expense ratio of 2.80% (as on Jun 30, 2018) which will be charged annually and you will have to pay an exit load of 1% if you redeem your investments before attaining 60 years of age. The minimum investment you can make in this scheme is Rs 5000 and you can start a SIP for as low as Rs 500.
Asset Distribution
Tata Retirement Savings Fund Progressive Plan being a multi-cap scheme, diversify its investment across different market capitalization. It has 69.16% investment in large-caps, 25.37% in mid-caps, and 5.47% in small-cap companies. As for sectors, the scheme invests a major part in finance, FMCG, services, construction, automobile, and energy sectors and the top holdings from these sectors are HDFC Bank, Kotak Mahindra Bank, Yes Bank, HDFC, Larsen & Toubro, Hindustan Unilever, and many more.
Performance Analysis
Tata Retirement Saving Fund has helped thousands of investors in achieving their long-term goals. The scheme has performed really well even during market volatility and has provided returns of 10.50%, 14.25%, and 19.74%, in 1, 3, and 5 years respectively. Where other multi-cap schemes are struggling to provide returns of 5-6%, this scheme has provided an annual return of 10.50%, which shows how good the management of the scheme is. Also, keep in mind that as the assets under management will keep increasing, so will the performance of the fund, as fund managers will have money, which they can use to create a more diversified portfolio.
This covers all the basic information regarding Tata Retirement Saving Fund Progressive plan. This scheme has maintained 4 to 5 star rating for most of its life and has beaten its benchmark and category on most occasions. So, don't wait up and start your investments today to enjoy the autumn of your life.
Go through the article know about Tata Retirement Saving Fund Progressive Plan.
Dishika baheti is a financial expert working with MySIPonline. She has been working in mutual fund industry since years and holds a lot of experience in analyzing schemes from various categories.