• Investment
  • Car
  • Bike
  • Taxi
  • Term Life
  • Health
  • Travel

Reliance Retirement Fund

Retirement is one of the most important stages of an individual’s life. It is often said that retirement is the time when you can enjoy everything that you wanted to do when you were working, but never had the time. Many of us have a long list of things that we would want to do once we retire, but for having a com-fortable and peaceful retired life, it is very important to plan for it well in advance. After all, for a better tomorrow, you have to start planning today. Thankfully, there are many avenues for the investors, and when it comes to finding the perfect retirement scheme, Reliance Retirement Fund surely tops the charts. If you are looking for a comprehensive retirement plan, then Reliance Retirement Fund (RRF) will be the best choice for you. With the RRF you then do not need to invest in other annuities. There are many unique features of Reliance Retirement Fund that make it so popular. It is an open-ended scheme, where you can purchase and repurchase the Reliance Retirement Fund. Also, this plan doesn’t have a fixed ma-turity term. With the approval of the Central Government of India, RRF has become the first Notified Re-tirement Fund. This is an open ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier)

Types of Retirement Fund Offered by Reliance

The company provides its investors with two types of portfolios for investment that are:

Reliance Retirement Fund - Wealth Creation Scheme

The Wealth Creation Scheme is an equity-oriented scheme. This particular product by the RRF is consid-ered to be most suitable for those investors who are looking for long-term growth and want their capital to appreciate. For people who have an extended phase of capital-accumulation before they retire, the Wealth Creation Scheme is a better option. Here, they invest predominantly, i.e. almost 65%-100% of the funds, in equity and equity related avenues and invest the remaining, i.e. 0% -35%, in fixed income secu-rities like debt, money market. Let us suppose you buy this plan at the age of 27 and your retirement age is 60, this scheme will help you to add to your retirement collection, as there is a higher degree of equity exposure.

Reliance Retirement Fund - Income Generation Scheme

The Income Generation Scheme is a debt type of fund. This product by the RRF is also considered to be most suitable for those investors who are nearing their retirement and so are looking for long-term growth and want capital growth. Here, the investment is made predominantly, almost 70%-90% of the funds, in fixed income securities like debt, money market and the remaining, almost 5%-30% of the funds, are aimed towards equity and equity related schemes. This might be a better option for you if you are in your 50s and would be retiring at 60. As the exposure to equity is high in this scheme, so the princi-ple that you have invested is protected.

Benefits of Reliance Retirement Fund

  • One of the biggest benefits of the Reliance Retirement Fund is that you have the option to switch be-tween these two schemes, that too without paying an extra charge such as an exit load.
  • The Wealth Creation Scheme is an equity oriented and balanced mutual fund. It proves to be a much better investment as compared to NFO.
  • Reliance Retirement Fund also offers the ‘Auto-Transfer Facility’, where once you reach the age of 50 or after the lock-in period or at a date specified by you, the corpus that has been so far accumulated will be moved from the wealth creation schemes to the income generation scheme.
  • The ‘Step-Up Facility’ is another advantage of the RFF, which allows you to raise your SIP by a specific amount at a pre-decided interval. For example, if your monthly SIP for the current year is INR 5,000 from the next year you can increase it to INR 6,000.
  • The SWP option which is the Systematic Withdrawal Plan, helps you plan better as you reach your re-tirement. The SWP allows you to make a monthly or quarterly or annual withdrawal option.
  • This RRF is also eligible for a tax deduction under section 80C of the Income Tax Act 1961.

Conclusion

Retirement is indeed one of the most important stages of life. Planning for it helps you prepare to be comfortable in this new way of life. The more you learn about Reliance Retirement Fund scheme, the better you would be able to understand the investment options it provides you. A major advantage of RRF is that you can cover both the needs - wealth creation as well as income generation. You simply need to plan ahead and with time on your hands, you can first generate a good amount of capital which can then be used as a regular source of income. With Reliance Retirement Fund, you get the opportunity to invest in a plan today, that will prove to be very helpful for you tomorrow.

FAQs on Reliance Retirement Fund

How do I buy Reliance Retirement Fund plan online?

To buy the Reliance Retirement Fund plan online, you need to visit the company’s official website investeasy.reliancemutual.com/Online/# . If you are an existing investor, you can log in using your username and password. If you are a first-time investor you can either fill in the registration form or simply invest using your PAN details.

How do I contact Reliance Retirement Fund Company?

To get in touch with the company you need to go through the customer service. Log on to www.reliancemutual.com/funds-performance/reliance-retirement-fund. You may call on the toll-free number- 1800-300-11111, or write to them on this mail id: customer_care@reliancemutual.com. The Address of the company office is: Reliance Mutual Fund, 7th Floor South Wing & 5th Floor North Wing, Near Prabhat Colony, Prabhat Colony Rd, Sen Nagar, Santacruz East, Mumbai, Maharashtra, India- 400055.

How do I log in Reliance Retirement Fund Company website?

To log in to the Reliance Retirement Fund website, you need to visit the company’s official website investeasy.reliancemutual.com/Online/#. If you are an existing investor, you can log in using your username and password. If you are a first-time investor you can either fill in the registration form or simply invest using your PAN details

What is Reliance Retirement Fund Company's Contact Number?

You may call on the toll-free number- 1800-300-11111.

Which Reliance Retirement Fund scheme should I invest?

The Wealth Creation Scheme by the RRF is considered to be most suitable for those investors who are looking for long-term growth and want their capital to appreciate. If you still have many years before you retire, this scheme will help you to add to your retirement collection, as there is a higher degree of equity exposure. On the other hand, if you are nearing and retirement and therefore, are looking for long-term capital growth then Income Generation Scheme, which is a debt type of fund, is probably more beneficial for you.

Will any charges apply on my transactions?

There is no charge when Systematic Withdrawal Plan/ Redemption or a switch out from the RRF is done at the time of your retirement at 60 years of age or after the lock-in period of 5 years is over. There is how-ever a 1% charge if you redeem or switch out from the fund before 60 years of age. If you switch be-tween Wealth Creation Scheme to Income Generation Scheme or vice versa, there will be no switching charges. There also won’t be any charge when auto transfer from Wealth Creation Scheme to Income Generation Scheme takes place when you turn 50 years.

What is the Net Asset Value of a scheme?

The NAV or the Net Asset Value is the per share value of a mutual fund scheme. It is calculated with the formula: value of the mutual fund assets - value of its per unit liabilities. In simple words, it is the cost at which you purchase the unit of a mutual fund scheme.

How do I redeem the units of Reliance Retirement Fund?

Redemption gives you the option withdrawing either partial or the total amount or the units that you have invested, by selling back the units to the company at the NAV that is currently applicable. Log on to www.reliancemutual.com/transact-online/transact. There is the option that says ‘Redemption’. When you click that you are directed to a new page. Enter your username and the passwords and log in to transact further.

Who cannot invest in the schemes of Reliance Retirement Fund?

Resident Adult Individuals, either single or jointly (not exceeding three), Non – resident Indians and per-sons of Indian origin residing abroad, Parents / Lawful guardians on behalf of Minors only are allowed to invest in the schemes, apart from these others are not allowed to invest in this scheme.

Why should I invest in Reliance Retirement Fund scheme?

Reliance Retirement Fund scheme is a pension fund that gives you the opportunity to invest in equity and also avail tax benefits under section 80C of the IT Act 1961. If you are in your late twenties or early thirties, investing in the Reliance Retirement Fund scheme can be an excellent platform to create wealth and also generate income. Because it is an open-ended fund, you can purchase this fund at any time.