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Our Bureau Axis Mutual Fund has launched an open-ended Retirement Savings Fund with free insurance cover for investors’ systematic investment plan (SIP) commitments.
The fund house has tied up with HDFC Life Insurance for providing the cover, which will start one year after the first SIP instalment is paid.
For instance, if an investor starts an SIP of ₹10,000 a month, he would have invested ₹1.2 lakh in one year. He will get insurance for SIP of ₹10.8 lakh.
Axis MF expects to collect ₹800-1,000 crore during the new fund offer which opens on Friday and closes on December 13. Axis Retirement Savings Fund will have a lock-in period of five years. It offers three investment plans — aggressive, dynamic and conservative.
Under the aggressive plan, the fund house will invest 65-80 per cent of the corpus in equity while in dynamic it will be 65-100 per cent.
In the conservative plan, the debt exposure will be 40-80 per cent.
Chandresh Kumar Nigam, Managing Director, Axis AMC, said retirement planning is slowly emerging as a critical issue for the working age population as it faces the prospect of living out a long post-retirement life without formal social security and changes in the traditional family support structure.
People desire to remain self-sufficient during the retirement years without a change in their lifestyle, he added.
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