Tata Retirement Savings Fund

The fund is an open-ended aggressive hybrid scheme and is offered in two types of plans:

• Tata Retirement Savings Fund - Regular Plan

• Tata Retirement Savings Fund - Direct Plan

These plans are further offered in two categories:

• Moderate Option

• Progressive Option

Tata Retirement Savings Fund Facts 

Investment Objective

The primary objective of the Tata Retirement Savings Fund is to be a financial planning tool for the long-term financial security of investors based on their retirement planning goals. The composition of the fund comprises 77.33% in equities, 15.85% in debts, and 6.83% in cash & cash equivalents. The top 3 sectors comprise 38.5% of the fund, with the top 10 equity holdings comprising 35.18% of the fund. The fund primarily follows a growth-oriented style of investing and invests across market capitalization. It presently invests 67.33% in giant & large-cap companies, 26.74% in mid-cap, and 5.92% in small-cap companies. 

The mutual fund house constantly monitors the economic conditions and the market fluctuations to ensure the stable performance of the fund. Investments are made only when the securities show promising return trends. The constant monitoring also helps the fund house invest in the market when conditions are most favorable that yield positive results.

Fund Summary

1. Tata Retirement Savings Fund - Moderate Option - Regular Plan

   • Risk: Average

   • Expense Ratio (as of January 31, 2022): 2.12% 

   • Net Asset Value (NAV): INR 40.7936 (as of February 28, 2022)

   • Returns: 11.04% (5 year)

   • Compound Annual Growth Rate (CAGR): 14.57% p.a. (since inception)

2. Tata Retirement Savings Fund - Moderate Option - Direct Plan

   • Risk: Average

   • Expense Ratio (as of January 31, 2022): 0.64% 

   • Net Asset Value (NAV): INR 46.3064 (as of February 28, 2022)

   • Returns: 12.57% (5 year)

   • Compound Annual Growth Rate (CAGR): 15.76% p.a. (since inception)

3. Tata Retirement Savings Fund - Progressive Option - Regular Plan

   • Risk: Below Average

   • Expense Ratio (as of January 31, 2022): 2.23% 

   • Net Asset Value (NAV): INR 40.14 (as of February 28, 2022)

   • Returns: 12.05% (5 year)

   • Compound Annual Growth Rate (CAGR): 14.39% p.a. (since inception)

4. Tata Retirement Savings Fund - Progressive Option - Direct Plan

   • Risk: Below Average

   • Expense Ratio (as of January 31, 2022): 0.3% 

   • Net Asset Value (NAV): INR 46.3489 (as of February 28, 2022)

   • Returns: 13.74% (5 year)

   • Compound Annual Growth Rate (CAGR): 15.59% p.a. (since inception)

Fund Return Summary

1. Tata Retirement Savings Fund – Moderate Option - Regular Plan:

   Tenure	Percentage Return
   1 year	10.21%
   3 years	12.98%
   5 years	11.04%
   Since inception	14.57%

2. Tata Retirement Savings Fund – Moderate Option - Direct Plan:

   Tenure	Percentage Return
   1 year	11.85%
   3 years	14.68%
   5 years	12.57%
   Since inception	15.76%

3. Tata Retirement Savings Fund – Progressive Option - Regular plan:

   Tenure	Percentage Return
   1 year	9.71%
   3 years	14.08%
   5 years	12.05%
   Since inception	14.39%

4. Tata Retirement Savings Fund – Progressive Option - Direct Plan:

   Tenure	Percentage Return
   1 year	11.44%
   3 years	15.98%
   5 years	13.74%
   Since inception	15.59%

   *Returns are subject to change.

   *The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons 

Benefits of the Tata Retirement Savings Fund

The Tata Retirement Savings Fund has the following benefits:

• Effective Combination: The fund provides a combination of long-term wealth creation and income generation opportunities. Notwithstanding the price volatility, one should invest in this fund for a period not less than five years.

• Lower Volatility: NAVs of such funds tend to fall lesser than pure equity funds when the broader stock markets decline due to significant debt allocation. These funds are suitable for equity investors who prefer conservative equity allocation.

Who Should Invest in the Tata Retirement Savings Fund?

The fund is best suited for investors who are looking for:

• Conservative asset allocation 

• Income generation as well as wealth creation

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