Tata Retirement Savings Fund Moderate Plan

Tata Retirement Savings Fund Moderate Plan is managed by Amish Munshi and Murthy Nagarajan. The fund seeks to provide a financial planning tool for long term financial security for investors based on their retirement planning goals. This fund is barely a year old. New investors can safely skip this fund. If you have already invested in this scheme, exit now to invest in a better performing fund.

Where does Tata Retirement Savings Fund Moderate Plan invest your money?

Tata Retirement Savings Fund Moderate Plan is a balanced fund which invests your money in both equity securities and debt securities. It has more than 84% exposure to equity and 15% exposure to cash and cash equivalents such as T-bills, banker’s acceptance and money market instruments.

Its equity portion has large cap bias which means most of your money will be invested in stocks of large sized companies. Tata Retirement Savings Fund Moderate Plan has 77.98% exposure to large sized companies, 18% exposure to midsized companies and 1.32% exposure to small sized companies. Large cap companies tend to be stable as compared to mid and small cap companies.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not suitable for what?
  • Long Term needs
  • Creation of Wealth
How has Tata Retirement Savings Fund Moderate Plan performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2011, your value of investments would be around Rs 1.18 lakhs. The performance has been similar to other funds in this category. The fund has been giving around 11% returns to those who have stayed invested since inception.

Assume you had invested Rs 10,000 every month in Tata Retirement Savings Fund Moderate Plan through SIP since inception today you would have around Rs 1.83 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

The exit load applied in the scheme is as follows:

a) If redeemed / switched-out on or after attainment of retirement age i.e. 60 years of age - Nil

b) In case of Auto switch-out of units on occurrence of “Auto-switch trigger event” – Nil

c) For Redemption or switch out of units before the attainment of retirement age i.e 60 years 

        i) If redeemed / switched out on or before expiry of 3 Years from the date of allotment – 3% of the applicable NAV.

       ii) If redeemed / switched out after 3 Years from the date of allotment – 1% of the applicable NAV.

Expense ratio of  Tata Retirement Savings Fund Moderate Plan Fund is 2.50%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.    

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. 

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