Are you in a similar situation just like Mr. X then you must be thankful to God as you are scrolling the right page. Let us agree to the fact that retirement planning is one of the major financial goals of an individual. The rising inflation rate and healthy expenses are enough to bring worry lines on your forehead. But if you are an investor below the age of 45 years then investing in TATA Retirement Savings Fund- Progressive Plan can help with your retirement planning. Keep reading to know more.

TATA Retirement Savings Fund is a mutual fund suite which comes in three plans namely- progressive, moderate, and conservative plan. The plans differ with one another on the basis of percentage of asset allocation in asset class, and age bracket.

The above table clearly indicates the difference between the plans. Talking about TATA Retirement Savings Fund - Progressive Plan, the retirement plan aims to generate a huge corpus for the investors by investing predominantly in equities for achieving superior returns. However, the retirement scheme of TATA Mutual Fund also allocates significant portion in the debt and money market instruments for stability. The plan is designed for the investors falling under the age of 45 years as such investors have high potential of digesting market risks. 

Now let us quickly have a brief about the basic information about the retirement fund of TATA.

Launched on 1st November, 2011 the fund competes with S&P BSE Sensex TRI in terms of growth and performance. As on 31st May, 2019 the AUM of TATA Retirement Savings Fund- Progressive Plan is Rs. 641 Crore. For participation, the mutual fund requires a minimum Lump Sum and SIP investment of Rs. 5000 and Rs. 500, respectively. Moreover, the scheme comes with an exit load of 1%, only when the investors withdraws the participation from the scheme within 1829 days. The expense ratio (as on 30th April, 2019) is 2.66%.

Now let us analyze the current portfolio of the mutual fund for retirement.

As of now, the fund has allocated 93.67% of the total assets in the equities and the remaining 6.33% is diversified in the cash & cash equivalents. Furthermore, TATA Retirement Savings Fund - Progressive Plan follows growth style of investment with large cap stocks occupying larger assets followed by midcap and small cap stocks.

The sector allocation of the fund also holds huge promises for the scheme. The fund managers have diversified the AUM in large number of sectors with the current most profitable sector, i.e., Finance Sector holding maximum assets. Among other sectors are FMCG, Services, Construction, Energy, Engineering, Healthcare, Automobile, and Cons Durable.

Moreover, below is the top 10 holdings of TATA Retirement Savings Fund- Progressive Plan:

1. HDFC Bank
2. ITC
3. ICICI Bank
4. Kotak Mahindra Bank
5. Larsen & Toubro
6. HDFC
7. Reliance Industries
8. Axis Bank 
9. Container Corp.
10. Hindustan Unilever

An overview of the top 10 holdings clearly reflects that the fund has parked the cash in the top performing companies having stable growth.
The investment style of the retirement fund is very efficient which is also depicted by the past performance of the fund.

The past performance of TATA Retirement Savings Fund- Progressive Plan is a proof that the retirement scheme has always strive hard in meeting the expectations of the investors. Also, the fund has defeated its benchmark and category’s average every single time. The 3, 5, and 7-year annualized return of the scheme is 15.27%, 14.51%, and 15.90%, respectively.

The finance experts believe that the fund has even more potential which is yet to be delivered to the investors. 

As per the experts, TATA Retirement Savings Fund- Progressive Plan is one of the best mutual fund investments for retirement planning. The fund also provides the facility of Auto-Switching which automatically moves the investor from one plan to another once he crosses the age bracket. Other exiting feature is Load Free Switch Facility by which an investor can switch six times from one plan to another without paying the exit load provided the investment has been associated with the fund for 5 years.

TATA Retirement Savings Fund- Progressive Plan gets a thumbs-up from the finance experts as well. Thus, without wasting any further time, start your SIP plan in the retirement fund of TATA Mutual Fund.
Happy Retirement!