Edelweiss Asset Management launches retirement plan in its schemes


Edelweiss Asset Management announced the launch of a unique feature for retirement planning under its mutual fund schemes. The Retirement Plan is a SIP feature built on life stage based asset allocation model for retirement planning. This is how it works: the plan gradually shifts the investment portfolio towards lower-risk investments based on age and life stage as one approaches retirement. It enables auto rebalancing of the retirement portfolio at a set frequency to reduce risk as the investor moves closer to retirement.

According to the fund house, the Retirement Plan gives investors enough flexibility to plan their 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 Systematic Investment Plan (SIP),” the fund house said.

The plan provides two asset allocation options – ‘Auto Option’ and ‘My Custom Option’. ‘Auto Option’ has a pre-defined 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.

“We realized that a lot of investors across different age groups have not started thinking about Retirement planning. Investors do not understand the crucial role of asset allocation in retirement planning. With the Retirement Plan, we have a solution to this very problem. The retirement plan helps one to do age based asset allocation which balances the exposure to equity and debt funds as per an investor’s age,” Radhika Gupta, CEO, Edelweiss Asset Management, said.

Edelweiss Mutual Fund said it conducted a research which revealed that most investors are not planning for their retirement properly. 65% investors have started saving for retirement but without any clue of the corpus they need for retirement. Similarly, 61% investors don’t know how much to invest in equity or debt assets and the importance of asset allocation in retirement planning. Around 48% investors felt they will not be able to maintain their current lifestyle during retirement years. Also, 52% investors have planned for their retirement using traditional investments which may not even beat inflation. Around 77% investors said they never consulted a financial advisor for their retirement planning

These numbers emphasize the importance of retirement planning and the need for expert financial advice in doing so, the fund house said in the press release.





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