Reliance Mutual Fund came up with Reliance Retirement Fund in 2015 to assist the retirees in the most efficient manner. The fund is divided into 2 parts namely wealth creation plan and income generation plan. Reliance Retirement Fund - Wealth Creation Plan follows a multi-cap investment strategy by selecting stocks throughout the top 500 stocks on the Indian stock exchange. The investments made in this scheme gets automatically transferred to the income generation plan when the investors reach the age of retirement. Another attraction of the scheme is that it comes under the umbrella of Section 80C and can reduce the tax liability by up to Rs 46,800*. Read to get more details of the fund as the experts at MySIPonline have provided details of the scheme to assist the investors.
Salient Features of Reliance Retirement Fund
- The wealth creation plan of Reliance Retirement Fund is an equity oriented scheme and invests predominantly in large-cap stocks with minor allocation in small and mid-cap stocks.
- The Income Generation Plan is a debt oriented hybrid scheme which aims for conservative growth of the accumulated capital.
- Switching between both the scheme can be done manually or automatically and is free of cost.
- It has a lock-in period of 5 years but switching can be done during this tenure.
- Various facilities regarding investment are available like auto transfer facility, step up SIP, and SWP option for periodic withdrawal.
- The fund aims to grab the power of compounding through equity tools to gain more capital for the post-retirement era.
- It is one of the rare funds who aim specifically for retirement planning while reducing the tax liability.
Investment Strategy
The investments for the fund are handled by Ms Sohini Andani who also manages many other top performing schemes at Reliance Mutual Fund. She uses the fundamental top-down investment strategy to select the quality stocks and invests in growth-oriented style. The stocks are selected with a long term perspective to assist the retirees. Reliance Retirement Fund - Wealth Creation has a low-risk portfolio and is suitable for investors with moderate risk appetite.
Why to Choose?
Retirement planning is the most important concern of one’s lifestyle and the majority of the individuals are dependent on some of the other source for financial assistance after retirement. Most of the retirement planning platforms provide much lesser returns and also incurs unwanted tax implications. Reliance Retirement Fund - Wealth Creation provides much better gains than any other traditional retirement planning tools like PPF, EPF, etc. It is a recently launched fund which is yet to complete 5 years but can be trusted for important goals like retirement planning.
The fund has a low-risk portfolio hence the risk is moderately low for an equity scheme. Investors should start investing in this scheme at an early stage to enjoy the benefit of compounding. Investors must check their suitability before investing as the fund has a lock-in period of 5 years and charges exit load of 1% until the investor turns to the age of 60 or retires, whichever first. To start investing today, connect our financial experts for suggestions and download our android and IOS app to become a successful investor today.
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