Eye on golden years: Baroda BNP Paribas MF launches retirement fund. Should you start investing?
Baroda BNP Paribas Mutual Fund's Retirement Fund aims to generate income and capital appreciation by investing in a diversified portfolio of equity and equity-related instruments and fixed-income instruments to provide a retirement solution to investors.
- May 8, 2024,
- Updated May 8, 2024 4:23 PM IST
Baroda BNP Paribas Mutual Fund (MF) on May 8 launched its Retirement Fund, which is an open-ended retirement solution-oriented scheme. The new fund offer or NFO of the scheme is open for subscription till May 22. The pension plan has a lock-in of five years or till retirement age (whichever is earlier).
The scheme will open for continuous sale and repurchase within five business days from the date of allotment.
The primary investment objective of the scheme is to generate income and capital appreciation by investing in a diversified portfolio of equity and equity related instruments and fixed income instruments with a view to provide a retirement solution to investors.
The scheme will offer regular and direct plans with growth and IDCW options.
The investment can be made both by way of lump-sum and SIP. Investors can opt for an SIP investment that suits their age and financial objectives. The minimum application amount for lumpsum investment is Rs 1,000 and in multiples of Re 1 thereafter.
The minimum application amount for daily, weekly, and monthly SIP is Rs 500 and in multiples of Re 1 thereafter. For quarterly SIP, the minimum investment amount is Rs 1,500 and in multiples of Re 1 thereafter.
The scheme will invest 65-80% in equity and equity-related instruments, 20-35% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.
Investors will also be given an option to withdraw a flat amount with a minimum amount being Rs 1,000 and in multiples of Re 1 on a monthly basis and Rs 1,500 and in multiples of Re 1 thereafter on a quarterly basis.
The scheme will be benchmarked against CRISIL Hybrid 35+65 - Aggressive Index. The scheme will be managed by Pratish Krishnan (equity investments), Mayank Prakash (debt investments), and Miten Vora (overseas investments).
“We are thrilled to announce the launch of Baroda BNP Paribas Retirement Fund, a crucial step forward in aiming to securing a financial future for all. Recent India Retirement Index Study #emphasises the importance for such a solution: 53% of Indians still rely on family wealth and children to finance their retirement. Furthermore, 90% of Indians over the age of 50 express profound regret at not having started their retirement planning earlier. These insights bring to light the vital need for sustainable retirement solutions," said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.
Talking about the importance of retirement funds, Soni said: "As life expectancy increases, it becomes imperative to ensure that retirement years are spent with financial peace of mind. Baroda BNP Paribas Retirement Fund aims to meet this need. Most investors start saving for retirement too late and that too in traditional options. We believe that given the long-term nature of investments, it is important that investors consider investing into capital market options like mutual funds which have the potential to compound their savings at much better rates."
Baroda BNP Paribas Mutual Fund (MF) on May 8 launched its Retirement Fund, which is an open-ended retirement solution-oriented scheme. The new fund offer or NFO of the scheme is open for subscription till May 22. The pension plan has a lock-in of five years or till retirement age (whichever is earlier).
The scheme will open for continuous sale and repurchase within five business days from the date of allotment.
The primary investment objective of the scheme is to generate income and capital appreciation by investing in a diversified portfolio of equity and equity related instruments and fixed income instruments with a view to provide a retirement solution to investors.
The scheme will offer regular and direct plans with growth and IDCW options.
The investment can be made both by way of lump-sum and SIP. Investors can opt for an SIP investment that suits their age and financial objectives. The minimum application amount for lumpsum investment is Rs 1,000 and in multiples of Re 1 thereafter.
The minimum application amount for daily, weekly, and monthly SIP is Rs 500 and in multiples of Re 1 thereafter. For quarterly SIP, the minimum investment amount is Rs 1,500 and in multiples of Re 1 thereafter.
The scheme will invest 65-80% in equity and equity-related instruments, 20-35% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.
Investors will also be given an option to withdraw a flat amount with a minimum amount being Rs 1,000 and in multiples of Re 1 on a monthly basis and Rs 1,500 and in multiples of Re 1 thereafter on a quarterly basis.
The scheme will be benchmarked against CRISIL Hybrid 35+65 - Aggressive Index. The scheme will be managed by Pratish Krishnan (equity investments), Mayank Prakash (debt investments), and Miten Vora (overseas investments).
“We are thrilled to announce the launch of Baroda BNP Paribas Retirement Fund, a crucial step forward in aiming to securing a financial future for all. Recent India Retirement Index Study #emphasises the importance for such a solution: 53% of Indians still rely on family wealth and children to finance their retirement. Furthermore, 90% of Indians over the age of 50 express profound regret at not having started their retirement planning earlier. These insights bring to light the vital need for sustainable retirement solutions," said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.
Talking about the importance of retirement funds, Soni said: "As life expectancy increases, it becomes imperative to ensure that retirement years are spent with financial peace of mind. Baroda BNP Paribas Retirement Fund aims to meet this need. Most investors start saving for retirement too late and that too in traditional options. We believe that given the long-term nature of investments, it is important that investors consider investing into capital market options like mutual funds which have the potential to compound their savings at much better rates."