Should I Invest in Tata Retirement Savings Fund - Progressive Plan?
Looking for a retirement plan to invest in apart from from the traditional ones? Here is a scheme by Tata Mutual Fund named Tata Retirement Savings Fund. Under this scheme, there are three plans in which you may invest: Progressive, Moderate, and Conservative. Investors may select the right plan according to their portfolio's requirement. In this article, we are going to discuss about the progressive plan.
Tata Retirement Savings Fund - Progressive Plan
This is an open-ended scheme which was launched on November 01st, 2011 with an investment objective to invest mainly in equity and equity related instruments to distribute medium to long-term gains with emphasis on capital appreciation.
Asset Allocation
This scheme may invest about 85% to 100% in equity and its related instruments, up to a maximum of 15% in debt, and up to 10% in others. As on July 31st, 2018, the assets under management of this scheme was Rs. 518 crores. It has invested about 92.88% in equities, 6.23% in cash and cash equivalents, and 0.89% in debts. Investment in equity has been done across different caps such as giant-cap, large-cap, mid-cap, and small-cap with percentage of assets allocated in them being 52.43%, 14.12%, 27.45%, and 6%, respectively. According to the experts at MySIPonline, this allocation is impressive and as per the category's requirements.
Its benchmark is NIFTY 50, compared to which it has invested more in sectors such as FMCG, Services, Construction, Engineering, etc. Sectors in which Tata Retirement Savings Fund has invested less than its benchmark are Financial, Energy, Technology, and Healthcare. The fund managers have selected top companies for investment such as HDFC Bank, Yes Bank, Kotak Mahindra Bank, ITC, HDFC, Larsen & Toubro, Hindustan Unilever, Maruti Suzuki India, etc.
How Is Tata Retirement Savings Fund Growth Performing?
This scheme has surpassed both its benchmark NIFTY 50 Total Return and category in term of returns. The one year return that it has yielded is 16.14% which is more than its category (13.26%). The three year return is 16.10% while that provided by benchmark is 13.18% and category is 11.87%. The five year return by this scheme is 23.83% which is again more than its benchmark and category. It has even beaten its competitors such as Axis Focused 25 Fund, and Parag Parikh Long Term Equity Fund in five year return.
Key Factors About Tata Retirement Savings Fund
The minimum purchase amount with which the new investors may invest in this scheme is Rs. 5000 and the minimum additional purchase amount for existing investors is Rs. 1000. Now entry load will be charged from investors who are willing to invest in it. Investors who redeem the units before 60 years of age will be liable to pay 1% as exit load. As on August 21st, 2018, the net asset value was Rs. 30.3991.
Tata Retirement Savings Fund is a retirement savings solution that will help you earn well by the time you retire as a result of its asset allocation and fund managing style. Investors who can bear moderately high risk and are ready to lock-in their money for about 5 years may consider investing in this scheme. To invest in it online, log on to MySIPonline, a leading investment platform that provides help throughout.