Reliance Retirement Fund- Tax-Efficient Retirement Planning for a Better Future

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

1. 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. 
2. The Income Generation Plan is a debt oriented hybrid scheme which aims for conservative growth of the accumulated capital. 
3. Switching between both the scheme can be done manually or automatically and is free of cost.
4. It has a lock-in period of 5 years but switching can be done during this tenure. 
5. Various facilities regarding investment are available like auto transfer facility, step up SIP, and SWP option for periodic withdrawal. 
6. The fund aims to grab the power of compounding through equity tools to gain more capital for the post-retirement era. 
7. 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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How and Why to Start Saving for Retirement with Reliance Retirement Fund Now?

Your first paycheck may be meant for buying that shoes or dress which you were looking from months, or endless parties on the weekend as well as getting as many pictures for perfect #OOTD for Instagram. No one thinks of saving it or investing it for the retirement purpose this early, right? We hate to kill your buzz, but most of our experts say that everyone should think about it. Because the time is by your side and retirement planning is that thing that you should do ASAP. Guess what, if you plan your retirement now with the Wealth Creation Plan of Reliance Retirement Fund, you can make all your forlorn dreams into reality.

To be financially secure and pursue dreams at the same time, you need to start saving early. We all know that adulting is hard, but here MySIPonline has bought you a few tips that help you to live the best life sooner than you think.

How to Save?

We always focus on investment through SIP mode. It has one of the biggest plus points which investors need not to time the market. Hence, investing recurrently will make sure that you are fully invested at various highs and lows and this will make the most of the opportunity that is hard to predict in advance. SIP investment offers the advantage of compounding, which Albert Einstein called the 8th wonder of the world. It’s because with every passing month of investment the interest will generate and also accumulate earnings from the previous interest.

So, if you invest the amount of Rs 5,000 every month for 25 years in Reliance Retirement Fund and expect the interest of 15%, you will have Rs. 1.65 Crore at the end. And if you step up the SIPs by 10% every year, you can take the amount of Rs 2.56 Crore to your home at the end of 25 years.

Why Reliance Retirement Fund?

The fund which has been meant explicitly for generating retirement corpus offers two investment portfolios to investors. It has wealth creation and income generation plans, where the former invest 80% of its corpus in equities while the later invest its 80% of its corpus in debt plans. The best part about these two is that investors can choose to transfer from one plan to another at any time of investment under the auto transfer facility.

Reliance Retirement Fund is an open-ended scheme, with a lock-in period of 5 years or till retirement age, whichever is earlier. So, investors who redeem their units before attaining the age of 60 (retirement age), they have exit load of 15%. This policy has been adopted by the fund to make investors stay invested in the long run. Besides this, the fund also offers deduction to investors under Section 80C of the Income Tax Act, 1961, up to Rs 1.50 Lakh.

So, if you are investing in Reliance Retirement Fund- Wealth Creation Plan, remember that slow and steady wins the race. You will reach your goals if you invest small amount regularly but stay invested for a long run. For investing in the fund, register yourself at MySIPonline. If you face any issue in investing, you can connect with our experts via call or email. You can also post any of your query related to the regular plan of the fund here, and our support team will reach you soon. 

Why Is Reliance Retirement Fund Wealth Creation Scheme a Perfect Beginning

Retirement planning is an integral part of the financial planning of every investor, as this is what decides that if the later years of a person will be as smooth as the present ones. Now, to get a good corpus for your retirement, the most important factor is a good start, and one such scheme that can provide a great beginning to your investment journey is Reliance Retirement Fund Wealth Creation Scheme. Let’s see what makes this fund stand out from the other retirement planning options.   

A Perfect Blend 

This scheme is a perfect blend of various combinations, and they are stated as below:

• The first and foremost combination it follows is the blend of value and growth investment style. This helps the scheme in providing stability as well as growth to the investors, as with value style of investing, it picks the opportunities that generate in the market and with growth style of investing, it picks stocks that can provide undeterred returns. It is one of the best strategies to enjoy long-term growth.
• The second is Reliance Retirement Fund Wealth Creation Scheme Growth Plans’ investment across different market caps, which will allow it to show stability during the market downside and high growth during the market upside. As of now, it has 77.09% investment in large-caps, 16.52% investment in mid-caps, and 6.40% investment in small-cap companies. Due to the volatility and correction prevailing in the mid and small cap space, the investment in these has been decreased which show the capability of the fund to adapt to the market trends.
• The third one is the blend of sectors in which Reliance Retirement Fund Wealth Creation Scheme invests in. At present, it has an investment in a total of 14 sectors from which finance, construction, energy, automobile, and technology holds the major allocation. This is another factor which will help the fund in generating stable returns during the variable market cycles.

Backed By Reliance Mutual Fund

This is yet another reason to choose this scheme. Reliance Retirement Fund Wealth Creation Plan is backed by one of the largest AMCs of India and some of the best minds are working together to move this fund to the top. This fund house is currently sponsoring a lot of great schemes right now, some of which are Reliance Small Cap Fund, Reliance Large Cap Fund, Reliance Liquid Fund, etc. With this exceptional management, the fund is expected to reach new heights in the coming years.

Available at Lower Price

Reliance Retirement Fund Wealth Creation Scheme is a little more than 3 years old and due to its flat performance during the yesteryears, the NAV has not increased that much and as of now it’s NAV is just Rs. 12.66 (As on Nov 21, 2018), which is just a little more than its face value of Rs. 10. So, this means that by investing now you can accumulate a great number of units even with small investment amounts. Now, this will help you greatly in the next few years as after the recent market downfall of October, it has shown a great stability and looking at it a jump in NAV can be expected in the next few months, providing you with a great growth.


So, these were some reasons to start your retirement planning with Reliance Retirement Fund Wealth Creations Scheme Growth Plan. Also, remember that for a perfect retirement corpus, the one thing you should always remember is that go for the long term investment and don’t guide your investments by getting affected by the volatility of the market, as ups and downs are a part of the equity market and this is what helps the funds to book profits.