If redeemed / switched-out after 5 years from the date of allotment- 1%
Investment Objective*
"The objective of the Fund is to provide a financial planning tool for long term financial security for investors based on their retirement planning goals. However, there can be no assurance that the investment objective of the fund will be realized, as actual market movements may be at variance with anticipated trends."
*Source: Scheme Information Document
Is this fund for you?
Tata Retirement Savings Fund (TRSF) is an open ended scheme comprising of three plans which are:
- Progressive Plan (an open ended equity scheme) - (TRSFP)
- Moderate Plan (an open ended equity scheme) - (TRSFM)
- Conservative Plan (an open ended debt scheme) - (TRSFC)
Thus TRSF aims to provide an investment tool for retirement planning of individual investors, where depending upon their risk appetite and age groups they can select from the aforementioned plans. Moreover, the fund also offers an auto switch / SWP (Systematic Withdrawal Plan) facility wherein one can automatically switch from one plan to the other; based on attainment of the predetermined age by the investor.
To facilitate automatic switching from one plan to another the TRSF offers the following options.
| Progressive Plan # |
Moderate Plan # |
Conservative Plan |
Upon completion of 45 years of age, investments shall be switched automatically from "Progressive Plan" to "Moderate Plan". This option is applicable for those investors whose age at the time of investment is less than 45 years. Please note that upon completion of 60 years of age, investments shall be auto switched again to Conservative Plan.
Option 2:
Upon completion of 60 years of age, investments shall be switched automatically from "Progressive Plan" to "Conservative Plan".
Default Option:Investor should appropriately choose the ‘option’ (i.e. option 1 or option 2 or no auto switch) in the application form. If the option is not indicated by the investor, then units shall, by default, be allotted as under:
- If, at the time of investment, investor’s age is less than 45 years then option 1 shall be considered as a default option and units shall be allotted accordingly.
- If, at the time of investment, investor’s age is 45 years or greater but less than 60 years then option 2 shall be considered as a default option and units shall be allotted accordingly.
- If, at the time of investment, investor’s age is 60 years or greater then auto switch facility shall not be available and his investments shall, by default, remain invested in the original plan (i.e. Progressive Plan).
|
Option 1:
Upon completion of 60 years of age, investments shall be switched automatically from "Moderate Plan" to "Conservative Plan". This option is applicable for those investors whose age at the time of investment is less than 45 years.
Default Option:
Investor should appropriately choose the ‘option’ (i.e. option 1 or no auto switch) in the application form. If the option is not indicated by the investor, then units shall, by default, be allotted as under:
- If, at the time of investment, investor’s age is less than 60 years then "option 1" shall be considered as a default option and units shall be allotted accordingly.
- If, at the time of investment, investor’s age is 60 years or greater then auto switch facility shall not be available and his investments shall, by default, remain invested in the original plan (i.e. Moderate Plan)
|
Auto switch under conservative plan is not available. |
(# Source: Scheme Information Document)
Portfolio & Investment Strategy:
Under normal circumstances the TRSF follows the under-mentioned asset allocation for the respective plan considering the investment objective of the scheme:
Progressive Plan
| Instruments |
Indicative Allocation Range
(% to Total Assets) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity and Equity related instruments |
85 |
100 |
High |
| Debt & Money Market instruments |
0 |
15 |
Low to Medium |
| Other securities |
0 |
10 |
High |
# Other securities shall include: Domestic Exchange Traded Funds, Overseas Exchange Traded Funds / Foreign Securities / Foreign Funds as may be permitted under the SEBI Regulations.
(Source: Scheme Information Document)
Moderate Plan
| Instruments |
Indicative Allocation Range
(% to Total Assets) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity and Equity related instruments |
65 |
85 |
High |
| Debt & Money Market instruments |
15 |
35 |
Low to Medium |
| Other Securities# |
0 |
10 |
High |
# Other securities shall include: Domestic Exchange Traded Funds, Overseas Exchange Traded Funds / Foreign Securities / Foreign Funds as may be permitted under the SEBI Regulations.
(Source: Scheme Information Document)
Conservative Plan
| Instruments |
Indicative Allocation Range
(% to Total Assets) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity and Equity related instruments |
0 |
30 |
High |
| Debt & Money Market instruments |
70 |
100 |
Low to Medium |
| Other Securities# |
0 |
10 |
High |
# Other securities shall include: Domestic Exchange Traded Funds, Overseas Exchange Traded Funds / Foreign Securities / Foreign Funds as may be permitted under the SEBI Regulations.
(Source: Scheme Information Document)
Each plan under TRSF follows a different investment allocation to cater to the needs of different investors depending upon their stages of life cycles. Thus under the progressive plan, by focusing on the need and risk appetite of younger age people, it aims at creating long-term growth by investing 85% of its total assets in equity and equity related instruments, and the rest (i.e. upto 15%) in debt instruments. Similarly the moderate plan by focusing on the need and risk appetite of middle aged people, aims to provide growth along with the increased exposure towards debt securities as compared to the "progressive plan". Likewise the conservative plan focuses on the need and risk appetite of elder age people, and aims at capital preservation (along with steady income stream) by investing dominant portion (of least 70% of its nets assets) in debt instruments, and rest in equity and equity related instruments to infuse a long-term advantage.
Fund Manager Profile
TRSF will be managed by trio - Mr. Mr. Bhupinder Sethi, Mr. Murthy Nagrajan and Dinesh Da Costa.
Mr. Bhupinder Sethi holds a Bachelors degree in Engineering and has to his credit an MBA. He is the Co-Head for equities at Tata Asset Management Ltd. and has 16 years of experience in asset management. Prior to joining Tata Asset Management Ltd, Mr. Sethi was associated with Jacob Ballas Capital India and Dundee Mutual Funds.
Mr. Murthy Nagrajan is the Head of fixed income at Tata Asset Management Ltd, and has to his credit a PGPMS along with Masters in Commerce. He has a total experience of 19 years, and his last assignment was with Mirae Asset Global Investment India. Ltd.
Mr. Dinesh Da Costa holds a bachelors degree in Commerce and also has to his credit a CFA charter along with an MBA in Finance. He is a specially dedicated fund manager at Tata AMC for overseas portfolios. Mr. Da Costa brings with him 11 years of experience in asset management, and Prior to joining Tata Asset Management Ltd, was associated with Dalal & Broacha Stock Broking as Head of equities (for Rest of Maharashtra).
Fund Outlook
TRSF’s Progressive Plan (TRSFP): As the fund invests a dominant portion (85% - 100%) of its assets in equity and equity related instruments while aiming to create long-term growth (for building a retirement corpus), its fortune would be closely linked to the movement of the Indian equity markets. It is noteworthy that the launch of the fund comes at a time when the equity markets across the world are reeling under the pressure of downbeat global economic data disseminating from the developed economies – especially the Euro zone. Moreover, the Indian equity markets are also feeling the pressure of sticky inflation (at 9.78% in August 2011), free-fall of the industrial growth (3.3% in July 2011), depreciation of Indian Rupee and anti-inflationary stance maintained by RBI. But having said that reasonable valuations of the Indian equity markets would give opportunity to the fund manager(s) do some “value buying: while building the portfolio, but again it depends upon how and where the fund manager(s) perceive value.
TRSF’s Moderate Plan (TRSFM): As the fund maintains almost a balanced approach in equity and debt by following its asset allocation pattern mentioned above, it aims to provide growth along with capital preservation with debt securities, but links the fortune of the fund with movement of the equity market (in congruence to risk factors mentioned above) as well as debt market. For it debt portfolio, with policy rates almost at the peak and inched-up yields making bonds markets attractive, fund manager would get attractive opportunities to build a portfolio. But returns of the portfolio would also depend upon the quality of debt papers held by the fund manager along how he positions the modified duration of the fund taking a view of the interest rate scenario.
TRSF’s Conservative Plan (TRSFC): As the fund focuses on capital preservation (by investing a dominant portion of its assets in debt and money market instruments) along with equity and equity related instruments (upto 30% of its net assets) to infuse a long-term advantage, the fund fortune would be majorly linked to the movement of debt markets. with policy rates almost at the peak and inched-up yields making bonds markets attractive, fund manager would get attractive opportunities to build a portfolio. But returns of the portfolio would also depend upon the quality of debt papers held by the fund manager along how he positions the modified duration of the fund taking a view of the interest rate scenario.