ICICI Prudential Mutual Fund and Aditya Birla Sunlife MF have launched retirement schemes. These funds will compete with existing products in the market place such as Franklin India Pension Fund, UTI Retirement Benefit Pension Fund, HDFC Retirement Savings Fund, Tata Retirement Savings and Principal Retirement Savings.
Both the fund houses are offering plans based on various stages of life and time left for their retirement. Investments in these funds are locked in for five years and get tax saving benefits under section 80C. During the lock in period, investors have the option to switch from one plan to another without any exit load.
ICICI Prudential’s NFO closes on February 21. Aditya Birla Sunlife’s NFO is open till March 5.
Wealth managers said these products work well for investors who do not have the necessary discipline to stay invested.
Some financial planners believe it is not necessary to use retirement products only to meet your retirement goals.
ICICI Pru’s NFO closes on February 21, while Aditya Birla Sunlife’s offer is open till March 5.