The iPlus SIP Insurance facility offers investors a complimentary life cover that is equal to the remaining commitment of their long-term SIPs
Axis Mutual Fund is looking to mop up Rs 800-1,000 crore through a new fund offer -- Axis Retirement Savings Fund, Chandresh Nigam, its CEO, told Moneycontrol.
Subscription to the scheme will open on November 29 and close on December 13.
The open-ended equity scheme with a retirement solution will have a lock-in of five-years or until retirement age, whichever is earlier.
On the rationale of launching a retirement savings fund, Nigam said, "Retirement planning is slowly emerging as a critical issue for the working-age population of the country as they face the prospect of living out a long post-retirement life with a lock of formal social security and changes to traditional family support structures."
The scheme will offer three investment option: 1) An aggressive plan where equity exposure will range between 65 percent and 80 percent; 2) A dynamic plan, where equity exposure will be dynamically managed between 65 percent and 100 percent; and 3) A conservative plan where the debt exposure will range between 40 percent and 80 percent.
Apart from a lumpsum investment, an investor can also invest through a systematic investment plan (SIP).
Under this scheme, the fund house is offering an additional feature of ‘Iplus SIP Insurance.' This facility offers investors a complimentary life cover that is equal to the remaining commitment of their long-term SIPs.
For instance: if an investor commits to a 10-year SIP, then at the end of the first year he will be given an insurance cover equal to nine (number of SIP year left) multiply 12 (number of months) = 108 SIP instalments. The insurance cover facility kicks in if, and only, he pays all the 12 SIPs in the first year.
If the person dies at the end of the fourth year, the nominee is paid the sum equal to (6*12=72 SIP instalments).
The cover ceases if three consecutive SIPs are not paid at the end of the SIP tenure.
For the insurance cover, the fund house has tied up with HDFC Life Insurance Company.
SIPs with insurance cover are also offered by Aditya Birla Sun Life Mutual Fund, Nippon India Mutual Fund, PGIM Mutual Fund and ICICI Prudential Mutual Fund.Other features:
- Plans: Direct and Regular
- Options: Growth and dividend
- Minimum investment: Rs 5,000 and in multiples of Re 1 thereafter
- Exit Load: Nil
- Performance benchmark
a) Aggressive Plan: NIFTY 50 Hybrid Composite Debt 70:30 Index
b) Dynamic plan: NIFTY 50 Hybrid Composite Debt 65:35 Index
c) Conservative plan: NIFTY 50 Hybrid Short Duration Debt 25:75 Index
- Fund Managers:
a) Equity: Jinesh Gopanib) Debt: R.SivakumarLIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.