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Retirement planning should be an essential part of an individual’s financial strategy, as this plan will not only help you in reaching your goals after retirement but also provides you with a fixed source of income even when you are not earning. Now, it cannot be overlooked that one of the most popular retirement planning options available today is retirement mutual funds. Today, in this post, we are going to talk about one such scheme, that can help you reach your retirement goals in a hassle-free way and that scheme is Reliance Retirement Fund- Wealth Creation Scheme.
Scheme Description
This scheme was launched on Feb 11, 2015, with the objective to provide investors with long term capital appreciation and a fixed income source after retirement by investing in a blend of equity and fixed income instruments. An open-ended scheme, this fund falls in the hybrid equity category. Reliance Retirement Fund Wealth Creation Scheme current NAV is Rs 13.04 (as on Jul 02, 2018) and assets under management as on May 31, 2018, are Rs 1252 crore. One of the best features of this scheme is that it provides an auto-switch option, choosing which will enable the scheme to automatically switch to fixed income generation scheme after the investor attain an age of 50 years. The fund has an expense ratio of 2.29% (as on May 31, 2018) and an exit load of 1% will be charged if you decide on redeeming your investment before attaining the age of 60 years. This scheme also falls under sec 80c, providing its investors with an additional perk of tax exemption. The minimum investment amount for this scheme is Rs 5000 for lump sum and Rs 500 for starting a SIP.
Asset Allocation
Being a hybrid equity scheme, this fund invests in a mix of equities from different market caps. Reliance Retirement Fund has 76.95% of total equity investment in large caps, 17.95% in small caps, and 5.07% in small-cap companies. The scheme has around 74.14% of total investment in its top 5 sectors which include finance, construction, automobile, metals, and energy. The top holdings of the fund include top-notch companies like HDFC Bank, Grasim Industries, Infosys, Larsen and Turbo, Reliance Industries, and many others. You can have a look at the detailed portfolio of this scheme at MySIPonline.
Previous Returns
Reliance Retirement Fund Wealth Creation Scheme has shown consistent growth in returns since its inception. The scheme has provided returns of 7.73% and 8.71% in 1 and 3 years, respectively (as on Jul 02, 2018). The fund showed a considerable drop between Feb 27, 2015, and Feb 29, 2016, which it recovered from soon, and showed an all-time best performance between Dec 2016 and Dec 2017.
This scheme is a great option for investors who are looking for good capital appreciation and a fixed income source after retirement which can help in fulfilling their financial needs and are ready to take moderate risk with their investment. If you want to invest in this scheme or have any doubt regarding this scheme, then you can contact our experts at MySIPonline.