Tata Retirement Savings Fund - Best performing savings fund for retirement

Tata Retirement Savings Fund - Best performing savings fund for retirement

Apr 2, 2018

Hybrid funds help to get the best of both equity and debt investments depending on the purpose of investment. While investing in equity helps in overcoming inflation, a debt based fund would help in adding stability to the investment portfolio. Hybrid debt oriented funds have at least 75% of the fund invested in debt and rest is invested in equity. The returns form a debt oriented hybrid fund are typically lesser than the equity oriented funds but provide benefits in terms of the longer term capital gains. Inflation, changing life style are few of the factors which have necessitated the need to increase the corpus fund being saved for retirement as well as lookout for options which provide a higher rate of interest (ROI). Hybrid debt funds are one of the best options as they provide the feasibility of determining the extant of equity and debt based on the retirement age.

Investing in Tata Retirement Savings fund moderate regular plan (growth)

Tata retirement savings fund – moderate regular plan (growth) aims at providing financial security in the longer run for the investors based on their retirement plans. Although the performance of the fund is influenced by the market movements, being a hybrid debt oriented fund the risk element is comparatively less. The fund was launched on 1st November, 2011 as an Hybrid open ended growth fund – retirement with the initial launch price per unit being Rs. 10. The minimum initial investment is a minimum of Rs. 5,000 with subsequent minimum investment of Rs. 1,000. Investing in the fund not only provides tax savings under section 80 C but also have potential for wealth creation for over a longer period of time. Tata Asset Management Limited manages this fund.

The portfolio of the fund is diverse with investments in various sectors including Finance, construction, retail, auto, Cement, consumer non durables, media and industrial products. Apart from these sectors a major chunk of nearly 22 % is made in various other categories. Finance and Construction projects are the sectors which occupy a higher share in portfolio with 10.5 % and 7 % respectively. CBLO, Yes Bank, L&T, Future Retail Ltd, HDFC Bank, Voltas are few of the major portfolio holdings of this fund.

Performance of the fund

The fund has been a consistent performer since the time it has been launched and performing in comparison to other funds in the same category.


Source: Swaraj Wealth Research


The fund has recorded returns of 18.17 % since the time of its inception which is comparatively higher than the average performance of the category – Hybrid Debt Oriented Funds (Retirement) which stands at 13.41 %. The 1-year, 3-year and 5-year returns of this fund yield higher returns when compared to the average returns of its category with returns of 18.47 %, 11.82 % and 20.19 % respectively in comparison to 10.88 %, 8.51 % and 13.75 % returns of the category.

The yearly performance of this fund has been consistently at par and exceeding the performance of the category of Hybrid Debt Oriented Funds (retirement).


Source: Swaraj Wealth Research


Apart from the at par performances during 2013, 2015 and 2016, the fund has performed extremely well in comparison to the category bench mark during the years 2014 and 2017. Especially the recent performance of the fund has been a high 38.8 % which is double the performance of the category. These strong recent performances make the Tata Retirement Savings Fund Moderate – Regular Plan (Growth) an ideal option to invest in as a Hybrid Debt Oriented Fund for retirement benefits.

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