Reliance Retirement Fund files offer document with Seb

An open ended notified tax savings cum pension scheme

 

Reliance Mutual Fund has filed offer document with Sebi to launch Reliance Retirement Fund, an open end notified tax savings cum pension scheme. The scheme will get tax benefit (upto Rs. 1 Lakh) as a Notified Pension Fund U/S 80C of Income Tax Act 1961. The New Fund Offer price is Rs. 10 per unit.

 

Investment objective: The investment objective of the scheme is to provide capital appreciation and consistent income to the investors which will be in line with their retirement goals by investing in a mix of securities comprising of equity, equity related instruments and fixed income securities.

 

Options: The scheme will have 2 plans: (Both the plans will have separate portfolio)

1. Wealth Creation Plan

2. Income Generation Plan

 

The above plans will have Growth Plan & Dividend Plans respectively as specified below:

• Growth Plan: Growth Option & Bonus Option

• Dividend Plan: Dividend Payout Option & Dividend Reinvestment Option

 

Lock - in Period: 5 years in the scheme from the date of allotment of units. (Note: 5 years lock in period is in respect to the scheme and not in respect to Wealth Creation Plan or Income Generation Plan. Auto transfer from Wealth Creation Plan to Income Generation Plan is applicable during 5 year lock - in period).

 

Asset Allocation: Wealth Creation Plan shall invest 65% to 100% of assets in equities and equity related securities with medium to high risk profile. On the other side it would allocate upto 35% of assets in debt and money market securities with low to medium risk profile.

 

Income Generation Plan shall invest 5% to 30% of assets in equities and equity related securities with medium to high risk profile. On the other side it would allocate upto 70% to 95% of assets in debt and money market securities with low to medium risk profile.

 

Benchmark: Wealth Creation Plan : BSE 100

 

Income Generation Plan : Crisil MIP Blended Index

 

Loads:

Entry load: Not applicable

Exit load:

1% if redeemed/switched out (other than Auto Transfer) before attainment of 60 years of age.

Nil in case of Auto Transfer from Wealth Creation Plan to Income Generation Plan.

Nil in case of Auto SWP/Redemption/Switch out (other than Auto Transfer) on or after attainment of 60 years of age or after completion of 5 year lock in period, whichever is later.

 

Minimum Application Amount:

For Lumpsum: Rs.5, 000 & in multiples of Re.500 thereafter

For SIP:i. Monthly Frequency: Rs. 500 & in multiples of Re. 500 thereafter

ii. Quarterly Frequency: Rs. 1,500 & in multiples of Re. 500 thereafter

iii. Annual Frequency: Rs. 5,000 & in multiples of Re. 500 thereafter

 

Minimum Target Amount: Rs. Twenty crore

Fund Manager: The scheme will be managed by Sanjay Parekh, Anju Chajjer and Jahnvee Shah (fund Manager - Overseas Investments).

 

Source: http://www.indiainfoline.com/Markets/News/Reliance-Retirement-Fund-files-offer-document-with-Sebi/4389968737

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