{"id":1335,"date":"2019-11-29T11:50:18","date_gmt":"2019-11-29T11:50:18","guid":{"rendered":"https:\/\/blog.certifiedfinancialguardian.com\/?p=1335"},"modified":"2019-12-02T07:16:14","modified_gmt":"2019-12-02T07:16:14","slug":"axis-retirement-savings-fund-a-sound-solution-for-your-retirement-needs","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2019\/11\/29\/axis-retirement-savings-fund-a-sound-solution-for-your-retirement-needs\/","title":{"rendered":"Axis Retirement Savings Fund: A Sound Solution For Your Retirement Needs?"},"content":{"rendered":"\n

In India, people usually retire at 58-60\nyears. But you will find many elderly people working out of compulsion.\nInitially, when people had shorter lifespans, there were fewer options for\nlifestyles, entertainment, and even lesser aspirations with substantial income.\nSo, the necessity to plan for one’s retirement years was quite non-existent. <\/p>\n\n\n\n

However, with changing times, incomes and\npurchasing power have increased parallel to inflating costs, growing\naspirations, and the increase in lifespan makes it imperative for planning for\nthe hay days of life. And depending on your children is the least ideal\nretirement option.<\/p>\n\n\n\n

Retirement planning is one of life\u2019s events\nthat one must start as early as possible. With a goal-based financial plan, one\nwill not have to worry about retirement.  Mutual fund houses have lagged for years;\nhowever, they have seen, at least the urban office-going community understands\nthe importance of retirement planning now. <\/p>\n\n\n\n

So Axis Mutual Fund<\/a> is\nalso among several fund houses that launched retirement fund, Axis Retirement Savings Fund. Axis Retirement\nSavings Fund is an open-ended retirement\nsolution-oriented scheme having a lock-in of 5 years or till retirement age\n(whichever is earlier).<\/p>\n\n\n\n

The Scheme offers 3 different Investment\nPlans according to the age bracket of an individual with respect to the risk-taking\nability.  Each Investment Plan will be\nmanaged as a separate portfolio.<\/p>\n\n\n\n

Image\n1: 3 Plans under Axis Retirement Savings Fund<\/em><\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

(Source: Axis Retirement Savings Fund\nProduct leaflet<\/a>)<\/p>\n\n\n\n

However, most investors still ignore\nfactoring in their retirement as a financial goal during their youth only to\nrealise what a gross mistake<\/a> this is, when on the brink of retirement.\nAnd hence the three variants are being offered as per the age bands so that they\ncan begin investing for their blissful second life. <\/p>\n\n\n\n

Table\n1:  Details of Axis Retirement Savings fund<\/em><\/strong><\/p>\n\n\n\n

\n Type<\/strong>\n <\/td>An open-ended retirement solution-oriented scheme having a lock-in of 5 years or till retirement age<\/td>\n Category<\/strong>\n <\/td>Special solution-oriented scheme (retirement fund)<\/td><\/tr>
\nInvestment objective of Axis Retirement Savings Fund<\/strong>

\nTo provide long-term capital appreciation \/ income by investing in a mix of equity, debt and other instruments to help investors meet their retirement goals.
\nHowever, there can be no assurance that the investment objective of the Scheme will be achieved.

\n\nInvestment objectives of Investment Plans under the Scheme are as given below:<\/strong>

\n
    \n\t
  1. Aggressive Plan<\/strong>
    \n\tTo generate capital appreciation by predominantly investing in equity and equity related instruments.

    \n\nThe Investment Plan may also invest in debt and money market instruments, units of Gold ETF or units of REITs & InvITs for income generation \/ wealth creation.<\/li>
    \n
  2. Dynamic Plan <\/strong>
    \n\tThe Investment Plan has a dual objective of generating capital appreciation by investing in equity and equity related securities as well as generating income by investing in debt and money market securities, while attempting to manage risk from the market through active asset allocation.

    \n\nThe Investment Plan may also invest in units of Gold ETF or units of REITs & InvITs for income generation \/ wealth creation.<\/li>
    \n\t
  3. Conservative Plan <\/strong>
    \n\tTo generate regular income through investments predominantly in debt and money market instruments and to generate long term capital appreciation by investing certain portion of the portfolio in equity and equity related securities.

    \n\tThe Investment Plan may also invest in units of Gold ETF or units of REITs & InvITs for income generation \/ wealth creation.<\/li>\n\t<\/ol>\n<\/td><\/tr>\n\t\n\t
Investment Plans<\/strong><\/td>\n
    \n\t
  1. Axis Retirement Savings Fund – Aggressive Plan<\/li>\n
  2. Axis Retirement Savings Fund – Dynamic Plan<\/li>\n\t
  3. Axis Retirement Savings Fund – Conservative Plan <\/li>\n\t<\/ol><\/td><\/tr>\n\t\n\t\n\t\n\t\n\t
\n Min. Investment<\/strong>\n <\/td>Rs 5,000 and in multiples of Re 1 thereafter<\/td>\n Face Value<\/strong>\n <\/td>Rs 10 per unit<\/td><\/tr>\n\t
\n Plans <\/strong>\n <\/td>\n\t\t
    \n\t\t
  • Direct<\/li>\n\t\t
  • Regular<\/li>\n\t\t<\/ul>\n <\/td>
\n Options<\/strong>\n <\/td>\n
    \n\t\t
  • Growth<\/li>\n\t
  • Dividend Pay-out Facility <\/li>\n\t<\/ul>\n\n <\/td><\/tr>\n\t
\n Entry Load<\/strong>\n <\/td>Dividend Pay-out Facility <\/td>\n Exit Load<\/strong>\n <\/td>Nil\n <\/td>Fund Manager<\/strong>\n <\/td>Mr Jinesh Gopani, Mr R. Sivakumar and Mr Hitesh Das (for Foreign Securities)\n <\/td><\/tr>
\n Benchmark Index<\/strong>\n <\/td>
  1. Axis Retirement Savings Fund – Aggressive Plan: NIFTY 50 Hybrid Composite Debt 70:30 Index<\/li>\n\t\n\t
  2. Axis Retirement Savings Fund – Dynamic Plan: NIFTY 50 Hybrid Composite Debt 65:35 Index<\/li>
  3. Axis Retirement Savings Fund – Conservative Plan: NIFTY 50 Hybrid Short Duration Debt 25:75 Index<\/li>\n\t\n\t<\/ol><\/td><\/tr>
\n Issue Opens<\/strong>\n <\/td>November 29, 2019<\/td>\n Issue Closes:<\/strong>\n <\/td> December 13, 2019\n<\/td><\/tr><\/tbody><\/table><\/div><\/center>\n\n\n\n

(Source: Scheme Information Document<\/a>)<\/p>\n\n\n\n

How will Axis Retirement Savings Fund\nallocate its assets?<\/strong><\/p>\n\n\n\n

Under normal circumstances, the asset\nallocation of the Investment Plans under the Scheme would be as follows:<\/p>\n\n\n\n