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Edelweiss Asset Management launches retirement plan

Our Bureau Mumbai | Updated on June 12, 2019 Published on June 12, 2019

Provides two asset allocation options — ‘auto’, ‘my custom’

The Edelweiss Asset Management has launched a new retirement plan under its mutual fund schemes. The retirement plan will have exposure to a diversified portfolio with an in-built asset allocation mechanism.

The plan gradually shifts the investment portfolio toward lower-risk investments based on age and life-stage as one approaches retirement. It enables auto rebalancing of the retirement portfolio at set frequency to reduce risk as one moves closer to retirement, said the fund house in a statement.

The scheme allows investors to plan their retirement by allocating their investments in select open-ended debt and equity schemes of Edelweiss Mutual Fund by investing through systematic investment plan.

The new fund offer provides two asset allocation options — ‘auto’ and ‘my custom’ mode. Under the auto option, investors are given a pre-defined asset allocation at every age, while the other option provides flexibility to customise equity and debt allocation as per risk appetite and the tenure of their investment.

This is a unique SIP feature and a first in the MF industry which focuses on life-stage-based asset allocation for retirement planning, said the fund house.

Radhika Gupta, CEO, Edelweiss AMC, said investors usually do not understand the crucial role of asset allocation in retirement planning. The retirement plan helps one to do age-based asset allocation which balances the exposure to equity and debt funds according to the investor’s age.

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Published on June 12, 2019
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