Aditya Birla Sun Life Retirement Fund NFO

Are you planned enough for your retired life?

How do you picture your retirement will be? Most of us today in our working years envisage retirement a little differently from how our parents did. Retirement is no longer about living a solitary life or just as grandparents. It is about living a better conscious life and pursuing all the passions that busy working years could not allow. It is also about being free from the ‘earning to make a living’ pressures, what we call as the financial freedom.
Why plan now?
To be financially free in our second innings, we need preparation now. Due to ever growing inflation & diminishing value of money over time, mere savings for retirement may not be enough. With growing life expectancy and medical costs multiplying, retirement life could be a squeeze, unless we invest better.

A Retirement Plan comes in handy to live it up in the Golden Years. It creates the discipline of regular investing coupled with benefits of compounding.

Aditya Birla Sun Life Retirement Fund, an open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier) is a scheme that gives a lot of flexibility and customization benefits to investors. The plan uniquely offers 30s, 40s, 50s & 50s Plus Debt Plan for varied age groups, giving higher equity exposure to younger risk taking investors and increasing Debt investments for higher age plans where safety of corpus is required. For example, the 30s plan has up to 100% equity exposure while the 50 Plus Debt Plan has up to 100% Debt instruments.

Benefits of Retirement Planning

In addition to peace of mind, it lets us:
Maintain Lifestyle
Retirement doesn’t mean that we have to give up good eating or traveling or enjoying club memberships. In fact, it is time to do all that even more. So padding up retirement corpus helps maintain the same or better lifestyle.
Fulfil Dreams
The dream of cruise vacation or setting up our own library requires free time, which is abundant in retirement years. So all the dreams should be fulfilled. After all, one life is all we have.
Protect Health
Doctor consultation bills, medicines or even surgery can be a constant with age and Healthcare costs are going through the roof nowadays. A retirement fund will ensure that health care will never go out of reach, even if expensive.
Leave a Legacy Behind
Who doesn’t wish to retire rich and have something sizeable to leave behind for children and grandchildren? A well thought out retirement plan not only keeps us in good stead while alive, it also takes care of generation next.
For whom is this Plan?
in 30s
Aditya Birla Sun Life Retirement Fund –‘The 30s Plan’
This plan is designed to aim for wealth creation and generating higher capital growth over long period of time. It’s ideal for investors who have just started their careers and are very far from their retirement.

While in “30s” we have many benefits on your side:

Time: Up to 3 decades to retirement
Savings: With lesser expenditure avenues we can allocate more towards savings.
Risk Profile: A lower age clubbed with long time to retirement means we can choose an aggressive asset allocation
Investment Philosophy
Multi-cap orientation with a focus on building a Diversified portfolio of quality companies across sectors and market cap
Blend of bottom up approach (for stock selection) and top down approach (for sector allocation)
Quality orientation involves selecting companies run by professional managers backed by strong promoters
Seeks to identify businesses with superior growth prospects and strong management available at reasonable valuation and offering higher risk adjusted returns
Instrument
Risk Profile
Range
Equity & Equity related instruments
Medium to High
80% – 100%
Debt & Money Market Instruments
Low to Medium
0-20%
in 40s
Aditya Birla Sun Life Retirement Fund –‘The 40s Plan’
This plan is also designed for wealth creation and capital growth over a long period of time but will have some exposure to debt & money market instruments with an aim to provide little stability to our money as wemove a little closer to your retirement.

Benefits of being in “40s”:

Time: Close to two decades until your retirement
Savings: While in ‘40s’ expenditures may have grown but so does the income, which allows to save & invest more towards our goals
Risk Profile: This period may warrant for ‘Step-Up’ (increase) in regular savings amount (SIP amount) but with a moderate to high growth orientation & risk.
Investment Philosophy
Will invest in a mix of equities, bonds, money market instruments to achieve both growth & income, while attempting to minimize volatility
Will seek to maintain a flexible equity exposure between 65-80% depending on the current market conditions.
Debt portion of the portfolio will predominantly follow an accrual strategy with investment in quality corporate bonds and debentures.
Equity component to be more quality focused while being diversified across sectors and market caps
Instrument
Risk Profile
Range
Equity & Equity related instruments
Medium to High
65% – 80%
Debt & Money Market Instruments
Low to Medium
20% – 35%
in 50s
Aditya Birla Sun Life Retirement Fund – ‘The 50s Plan’
This plan is designed for gradual and moderate growth with higher focus on preservation and consistency of growth. It is ideal for investors who are in their 50s and moving faster towards their retirement.

Benefits of being in “50s”:

Time: With the retirement nearing now, the need for regular & steady income asset class increases.
Savings: While in ‘50s’ the biggest benefit is that most of the other goals like buying house, children’s education may have been fulfilled. Income would be at peak and so can be savings for retirement.
Risk Profile: Regular investments (SIP) can periodically be topped up with lump-sum investments during 50s with a low to moderate growth orientation & risk.
Investment Philosophy
The portfolio will be a mix of bonds, money market instruments & equity.
Debt portion of the portfolio will predominantly follow an accrual strategy with investment in quality corporate bonds and debentures
Focus would be on building a high-quality accrual portfolio for the recommended investment horizon.
On the equity front, the fund will follow a multi cap strategy that is sector agnostic and seeks to generate alpha over a full market cycle
Instrument
Risk Profile
Range
Debt & Money Market Instruments
Low to Medium
75% – 100%
Equity & Equity related instruments
Medium to High
0-25%
in 50+

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Welcome to Invest India Online. Financial freedom means something different to every single one of our clients. For some, it means having enough money in retirement to build a second home and send the grandchildren to college.