Fund Review: Tata Retirement Savings Fund - Progressive Plan

Tata Retirement Savings Fund Progressive Plan is one of the best retirement solutions for everyone who wishes to increase their savings to enjoy their after work life without being constantly worried about the daily financially expenses. It has surpassed both its benchmark and category in respect of three-year and five-year returns. This scheme aims to invest 80% to 100% of the assets in equity and equity-related instruments which indicates towards the high growth scope that it holds. To know more about this scheme, read this blog to the end.

According to SEBI, Multi cap funds are those funds that invest a minimum of 65% of the assets in equity and equity-related instruments. Being a multicap fund, this investment product by Tata Mutual Fund has been designed keeping in mind the retirement requirements and to help old-aged people at large to live a relaxed life. Let’s read what the experts of MySIPonline have to say about this top retirement plan.

Who Should Invest in Tata Retirement Savings Fund - Progressive Plan?

1. Any person who doesn’t have a retirement plan or even those who have it but are looking for an additional one, may invest in it.
2. Investors who wish to add a plan that can help in wealth gain via investment in multi cap equities may consider this one.
3. Aggressive investors who are ready to earn high no matter what the risk is, should invest in this scheme.

Facts About Tata Retirement Savings Fund - Growth Plan

How Is Tata Retirement Fund Performing?

• This scheme has provided average annual returns of 17.64% since inception.
• Compared to its benchmark, this scheme has surpassed the returns for both three-year and five-year tenure by a good margin.
  

Risk Analysis of Tata Retirement Savings Fund (G)

• The standard deviation of Tata Retirement Savings Fund Progressive Plan which is 15.53 is higher than both its benchmark and category. Even the Beta of the scheme which is 1.05 is higher than its category’s Beta which is 0.97. Both these factors indicate that this fund is likely to fluctuate more in comparison to the other two.
• The Sharpe ratio of the scheme is 0.73 which is higher than both its category’s and benchmark’s ratio which are 0.54 and 0.65, respectively. This indicates that this plan is likely to generate better returns with higher risk.

Asset Allocation of Tata Retirement Savings Fund

• Since this is a multi cap fund, it has invested across equities such as giant-cap, large-cap, mid-cap, and small-cap with the assets allocated in them being 52.43%, 14.12%, 27.45%, and 6%, respectively.
• This multicap allocation will help the investors to get capital appreciation in a balanced manner along with the balanced risk.

 Sectors

• The major allocation has been done in the sectors that come under cyclical category with approximately 60% of the total assets.
• In the sectors that are considered sensitive and defensive, around 20% of the assets have been allocated individually.
• It has invested majorly in financial services followed by consumer cyclical. No assets have been allocated in the real estate and communication sector companies.

Top 10 Holdings

• Approximately, 44% of the total assets have been invested in the top twelve companies, in descending order of the assets allocated in them as mentioned in the above table. This states that it has diversified the assets across companies which is a good step towards risk management.
• It can be seen that the five year returns of almost all the stocks are noteworthy.

Tata Retirement Fund (G) - SIP and Lumpsum Investment

• Investment in this scheme via SIP of Rs. 1000 for three years will generate a maturity amount of Rs. 47,239. Here, the total investment amount was Rs. 36,000 and the wealth gain is of Rs. 11,239.20.
• If an investor invests Rs. 1,00,000 via lumpsum mode, then the wealth gain over time will be Rs. 45,012 generated at the interest rate of 45.01%.

Conclusion

With the improvement in correction phase, equity funds are anticipated to generate higher returns than they are yielding right now. This fund is a great opportunity for the one who seeks to earning high within the time left for retirement. To invest in Tata Retirement Savings Fund - Progressive Plan in a simplified manner, log on to MySIPonline. In case of any doubt or query, feel free to contact us anytime.