How Mutual Fund Retirement Plans Help In Retirement Planning

Welcome to FundooMoney, your 24X7 buddy for all your money matters. Like life insurance companies, some mutual funds also provide retirement plans which aim at helping investor save for their retirement. An investor wanting to consider them needs to know four important things about them. Here, we will discuss them, but in just a moment.

Multiple variants
Retirement plans come in multiple variants in terms of their asset allocation such as equity oriented fund, debt oriented fund, and a hybrid fund which invests in both equity and debt.

Tax benefit
Some retirement plan offers you tax benefit under Section 80C of the Income Tax Act which allow annual tax deductions of up to Rs 1.5 lakh.

Higher exit load
In order to bring long term investment discipline in investors since retirement is a long term financial goal, these retirement plans come with a hefty exit load of 1-5%, depending on the investment tenure.

Flexibility in investment options
They provide you with lump sum and systematic investment options. So you choose to invest in them as per your needs.
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