Saving enough money for a comfortable retired life for the entire family is the dream that everyone pursues with gusto. However, things do not always go to plan when investors leave it till too late or do not look for money-generating solutions at all. Now, that problem can be solved. Asset management firm Edelweiss Asset Management Limited (EAML) today announced the launch of Retirement Plan with a unique feature for retirement planning under its mutual fund schemes. Notably, for investors, the plan has a SIP feature built on life stage based asset allocation model for retirement planning, an EAML statement said. 

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Edelweiss Mutual Fund conducted an online survey and came out with some interesting insights given below: 

1. 65% have started saving for retirement but without any clue on the corpus they need for retirement
2. 61% don’t know how much to invest in equity or debt assets and hence, the importance of asset allocation in retirement planning
3. 48% feel they will not be able to maintain current lifestyle during retirement years
4. 52% have planned for their retirement through traditional investments which may not even beat inflation
5. 77% have never consulted a financial advisor to help in retirement planning


 Based on above findings, the EAML brought to fore the importance of retirement planning and the need for expert financial advice in doing so. The report stated that the retirement plan helps address all the concerns of the findings. A single solution which provides exposure to a diversified portfolio with an in-built asset allocation mechanism. 

According to EAML, 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.

Commenting on the retirement plan launch, Radhika Gupta, CEO, Edelweiss Asset Management Ltd. said, “We realised 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”. 

The Retirement Plan gives investors enough flexibility, as it enables them 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. 

Further, the 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, the statement said.

This is a unique SIP feature and a first in the MF industry which focuses on life-stage based asset allocation for retirement planning.