Mutual fund houses gearing up for new breed of retirement linked mutual funds
Mutual fund houses – Axis and SBI have filed draft offer documents with SEBI to launch their retirement linked mutual funds having some unique features like insurance coverage, annuity etc.
Axis MF's Retirement Planning Fund, an open ended mutual fund retirement linked plan, will invest in equity and debt. The scheme will offer two plans – compulsory lock-in and no lock-in. While compulsory lock-in can be redeemed only after an investor attains 60 years of age, no lock-in plan can be redeemed at any point of time; however, it will be subject to an exit load for three years.
The scheme comes with features like life insurance coverage and annuity. The fund house will provide term life insurance coverage to its unit holders who have not turned 60. Interestingly, the fund house will pay premium from the fund's expense ratio. The annuity will be offered to investors who have turned 60. This is a v...
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