Edelweiss MF launches Retirement Plan

By Morningstar |  13-06-19 | 

Edelweiss Mutual Fund today announced the launch of Retirement Plan, a new feature for retirement planning under its mutual fund schemes. It is a SIP feature built on life stage-based asset allocation model for retirement planning.

Edelweiss Mutual Fund conducted an online survey which presented these insights:

  • 65% have started saving for retirement but without any clue on the corpus they need for retirement
  • 61% don’t know how much to invest in equity or debt assets and hence, the importance of asset allocation in retirement planning
  • 48% feel they will not be able to maintain current lifestyle during retirement years
  • 52% have planned for their retirement through traditional investments which may not even beat inflation
  • 77% have never consulted a financial advisor to help in retirement planning

 The Retirement Plan is a single solution which provides exposure to a diversified portfolio with an in-built asset allocation mechanism. This plan gradually shifts the investment portfolio toward lower-risk investments based on age and life stage as one approaches retirement. It enables auto rebalancing of the retirement portfolio at set frequency to reduce risk as one moves closer to retirement.

This plan enables investors to plan their retirement by allocating their investments in select open-ended debt and equity Schemes of Edelweiss Mutual Fund by investing through SIP. This plan provides two asset allocation options – ‘Auto Option’ and ‘My Custom Option’. ‘Auto Option’ gives a predefined asset allocation at every age while the ‘My Custom Option’ provides flexibility to customise equity and debt allocation as per risk appetite and the tenure of Investment. This tool will also enable Financial Advisors to do retirement planning systematically for their investors through customised asset allocation.

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