NFO closes on 21st October 2011.
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The 30-30 Challenge

Due to better healthcare & personal-care on one hand and improving standard of living on the other, people are getting healthier and living longer. It would not be uncommon for people to easily live up to 85 years in the near future.

Moreover, inflation is a “silent killer”. It reduces the buying power of money and the return on your investments. Traditional retirement investments may not beat the draining power of inflation. While they are certainly necessary, they may not be sufficient.

If one assumes that an average individual works up to the age of 55 years, it would mean that he/she would work for 30 “productive” years and further if he/she continues to live up to 85 years, then he/she would lead a retired life for 30 years. Therefore, the challenge for an individual is how to “fund” these “unproductive” retirement years. This is the “30-30” challenge.

It is vital to brace up to meet this challenge and avoid the throes of “old age poverty”. There has never been a greater need for building a voluntary retirement corpus than now.

Our Solution

TRSF is a carefully structured suite of plans designed to meet the investment needs of investors. It works as a retirement solution by offering choice of asset allocation to investors based on their life stage and risk preference.

As people age, their asset allocation has to undergo change. When they are young they need to accumulate wealth because they have “time” on hand. “Equities” is the wealth creation asset class. However it yields returns in the long-term. Therefore time is an essential “ingredient”.

As people approach “middle-age” the proportion of “equity” in their assets needs to reduce while the proportion of “debt” needs to increase.

When people reach “old-age”, a further decrease in proportion of “equity” is warranted with a consequent increase in the proportion of “debt”.

Feature

The Tata Retirement Savings Fund offers a unique “Auto-Switch” feature which takes away the hassles of adjusting the equity-debt proportion with increasing age. So if you start an SIP or make a lump sum investment in the “progressive” option and opt for the “Auto-Switch” feature, then the fund will do the needful asset allocation automatically as you cross different age brackets as explained below:

1)	Progressive to Moderate – switch happens once you attain the age of 45 years.
2)	Moderate to Conservative – switch happens once you attain the age of 60 years.

However the fund also provides the option of staying perpetually invested in a single plan of choice.

Once an investor retires he/she needs a regular flow of money to fund his/her expenses. While salary stops post retirement, annuities and pension form a major part of his/her regular cash flow. The unique “Auto-SWP” is designed with an objective to provide the investor with regular cash flow after he/she turns 60. There are 2 options of “Auto-SWP” facilities:

1)	Monthly – 1% of market value of investment as on date of completion of 60 years of age*.
2)	Quarterly – 3% of market value of investment as on date of completion of 60 years of age*.
*Amount which gets switched-out automatically under auto-switch facility shall be treated as redemption from unitholders corpus and is subject to fulfillment of minimum balance.

Hence, to meet the “30-30” challenge and to avoid falling in to the “old age poverty” trap, it is advisable to star t your retirement planning with “Tata Retirement Savings Fund”.

Types of Plans

Instruments	Indicative allocations (% to total assets)**		Risk Profile
	Minimum	Maximum
Progressive Plan
Equity and Equity related instruments	85	100	High
Debt & Money Market instruments	0	15	Low to Medium
Investment by the plan in securitised debt will not normally exceed 15% of the net asset of the plan.
Moderate Plan
Equity and Equity related instruments	65	85	High
Debt & Money Market instruments	15	35	Low to Medium
Investment by the plan in securitised debt will not normally exceed 15% of the net asset of the plan.
Conservative Plan
Equity and Equity related instruments	0	30	High
Debt & Money Market instruments	70	100	Low to Medium
Investment by the plan in securitised debt will not normally exceed 25% of the net asset of the plan.
All plans may also invest in Other Securities #	0	10	Low
** At the time of investments. # Other securities shall include: Domestic Exchange Traded Funds, Overseas Exchange Traded Funds/Foreign Securities/Foreign Funds as may be permitted under the SEBI Regulations.