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If you lack discipline, you can buy Axis Retirement Savings Fund

The fund offers flexible portfolios to investors with different risk profiles. It also comes with a lock-in period of of five years or until retirement age, whichever is earlier.

, ET Bureau|
Updated: Dec 10, 2019, 10.01 AM IST
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Financial planners believe investors lacking the discipline to save for their retirement could opt for the new fund offer of Axis Retirement Savings Fund, given the strong performance of the fund management team.

Investors, who are savvy can, however, build a retirement kitty using open-ended mutual fund schemes. Financial planners said many investors randomly redeem money in equity mutual fund schemes in the short term and not staying invested for the long term.

This could be due to a financial requirement, or non-performance in the short term.

“A retirement scheme that has a lock-in behaviourally makes investors’ mind work towards the long term,” says Tarun Biran, founder, TBNG Capital.

Birani points out that performance of all open-ended schemes of Axis Mutual Fund have been good with many of them in the top quartile over the last 1-3 year period.

Since retirement is a goal that could be 30 years away for a 30-year-old who does not want to be tied to one fund, investors could calculate their retirement needs and separately build a corpus.

“Savvy investors can build a retirement corpus using a combination of existing open-end equity and debt mutual funds,” says Anup Bhaiya, MD and CEO, Money Honey Financial Services. This gives them the flexibility to change a scheme if it does not perform for a long period of time.

The additional benefit of this fund over other existing ones is the group insurance cover it provides when investors put money through the SIP mode. For the insurance cover, it has tied up with HDFC Standard Life Insurance.

The cover will start one year after the first SIP instalment is paid. For instance, if an investor starts an SIP of Rs 10,000 a month, he would have invested Rs 1.2 lakh in one year. He will get insurance for SIP of Rs 10.8 lakh.

The NFO of Axis Retirement Savings Fund is currently open and closes for subscription on December 13. Like all other retirement solution-oriented schemes, it has a lock-in period of five years or until retirement age (whichever is earlier). The fund will be co-managed by Jinesh Gopani and R Sivakumar.

Axis Retirement Savings Fund offers flexible portfolios to investors with different risk profiles.

The scheme offers three investment plans: an aggressive plan where equity exposure will range between 65% and 80%, dynamic plan where equity exposure will be dynamically managed between 65% and 100%, and a conservative plan where debt exposure will range between 40% and 80%.
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