Pension-Retirement Plans by Mutual Funds | PlanYourWorld

Pension – Retirement Plans by Mutual Funds In India

There are a few Mutual Fund or Asset Management companies in India, which provide you different retirement plans to invest in accumulation phase for your retirement.

Franklin Templeton Mutual Fund.

UTI Mutual Fund.

Reliance Mutual Fund.

Which plan is better Traditional Pension Plan or Unit Linked Pension Plan?

These plans are based on the strategy of Asset Allocation, which follow the principle of asset balancing at definite periods. These can be good but only buying these plans cannot fulfil your need of planned retired life. You need to plan your corpus to have appropriate income after retirement.

Is there any Tax benefits?

These plans fall in ELSS (Equity Linked Saving Scheme) category, at the time of investment you get tax benefit up to 1 lac and at the time of maturity the returns qualify for Capital Gains.

After indexation you need to pay very low Long Term Capital Gains Tax. You can also take Dividends but it will not be wise for retirement planning.

Which plan should be bought?

You should not buy any plan without planning your need at retirement. These plans give moderate returns. Investment without knowing your need you can have short corpus or you may have very high surplus corpus by unnecessarily sacrificing your other needs.

The answer is comprehensive customized life planning, this makes you plan your life with approximately all the domains of life.

By paying Rs. 25000 a year in pension plan can you think of getting pension of Rs. 25000(in today’s value) per month at retirement?

The answer is ‘NO’

You need to access your need after Tax with deviation of 10% plus or minus to lead your retired life with your passion and dignity. Planyourworld provides you online financial planning portal to plan your life before buying any financial product.

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