Canbank MF first off the block in pension plans

The scheme will have three separate plans - aggressive pension plan, moderate pension plan and conservative pension plan - based on the profile of the investors.

The CanBank Mutual Fund official said that the investors will have to make an initial minimum investment of Rs 1,000.

Further, the investors would also have an option to make a monthly minimum investment of Rs 500 and above in his/her corpus under the Systemic Investment Plan (SIP), which will be a part of the pension schemes. He said that an aggressive pension plan would be suitable for younger investors with a longer time (over 20 years) for retirement and a higher risk appetite.

Under this plan, the minimum return on investment at maturity, would be around 60% whereas the maximum return would be 100%. The moderate pension plan, he said, would be suitable to investors with 15 to 20 years for retirement. Under this, the maximum return on equity investment, at maturity, would be 50% and the minimum would be 30%. The conservative pension plan is meant for investors having less than 15 years of service and a lower risk profile. For their investment in equity they would get a maximum return of 25%. In reply to a question, the MF official said that an investor would get retirement benefits after 55 years of age. A provision has also been made in the scheme to exit anytime from the plan at an exit load of 3%.

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