Recently, many of the Asset Management Companies increased the exit load on redemption of units for tenures ranging from 1 to 3 years. The fund houses which increased the exit loads include the big ones like UTI Mutual Fund, Axis Mutual Fund, HDFC Mutual Fund and Birla Sun Life. The increase in exit load has been in the range of 0.5% to 2% and has been spread across equity as well as debt schemes and even balanced funds.

The regular large scale churning of portfolios is any fund manager’s headache. Some estimate that AMCs have lost 10 to 15 million folios over the last 5 years. By this increased exit load, the fund houses are obviously trying to deter short-term investors.

Will this new development benefit you?

The answer depends on the schemes you wish to invest. If you plan to invest in a diversified scheme, it is always better to stay invested for a long time. However, if your choice is a sector fund, the increased exit load might not help you. The performance of many sectors are cyclical and perform exceptionally well during certain periods. So, it makes sense for many investors to move out of sector funds once it has performed well. But with the increased exit loads, you might think twice before exiting a sector fund.

Click here to read the entire report: http://www.business-standard.com/article/pf/exit-load-is-good-for-investors-114100900960_1.html

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Before we begin discussing how to plan a successful retirement, we need to understand why we need to take our retirement into our own hands in the first place. This may seem like a trivial question, but you might be surprised to learn that the key components of retirement planning run contrary to popular belief about the best way to save for the future. Further, proper implementation of those key components is essential in guaranteeing a financially secure retirement.

Planning for retirement? But not sure about how much you might need in your sunset years to maintain the same life style as current? And that includes savings for medical emergencies, traveling and leisure activities. Unless you know how much money you might need for surviving the constantly rising cost of living, and that too without a steady income, can be horrendous task to ponder about. This is why, every financial advisor suggests to plan your retirement as soon as you start earning as this helps you to build good corpus with less premium or investments.

People’s retirement needs vary greatly, but everyone will have basic expenditures: home maintenance or rent, transportation, medical care and living expenses.  This planning requires taking a lot of factors into consideration, such as what age do you hope to retire in, how much money you might require to cover the basic living expenses, how much money might be used for doing the things you plan to do after you have retired and so on. But the biggest question remains; where will the money come from? For determining all this and more, the use of a pension plan calculator is sure to come in very handy.

Many reputed financial services company offer pension plan calculator on their websites to identify and help you plan your retirement. But every planning should lead to execution, and if one start saving at-least a little amount from his early days of career, a lump-sum corpus can be build within 20 – 25 years of time-frame. You can also take a help of any reputed investment service provider company.

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Saving and investing for future financial security is a top priority for every individual. For many of us, increasingly busy lifestyle and lack of knowledge prove to be a hindrance in choosing the right investment product.

Mutual funds investment plans offer professional investment management for such individuals at an affordable cost. They are also considered as the hand-off and more safer way of entering the high risk equity market. We make investments to ensure that our savings enhance our ability to reach our goals.

A beginner can get confused while choosing the best Mutual Fund Investment Plan, as he can not differentiate between various types of Mutual Funds with fancy names. Mutual Funds can be classified into various categories under the following heads:-

While launching a new scheme, every Mutual Fund is supposed to declare in the prospectus the kind of instruments in which it will make investments of the funds collected under that scheme. Thus, the various kinds of Mutual Fund schemes as categorized according to the type of investments are as follows :-

(a) Equity Funds/ Schemes
(b) Debt Funds / Schemes   (also called Income Funds)
(c ) Diversifies Funds/ Schemes(Also called Balanced Funds)
(d) Gilt Fund/ Schemes
(e) Money Market Funds / Schemes
(f) Sector Specific Funds
(g) Index Funds

Goal Based Investment: If you have a short tenure, picking debt funds is a good option. For investors with medium tenure, balance funds which have exposure to both debt and equity are a good option. Long term investors can opt for more exposure to equity. You can also contact Investment Services Provider company, who can help you achieve your investment in sync with the tenure of the goal.

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Thinking of a deferred annuity or retirement plan to meet your retirement expenses? Many are under the impression that pension plans are only sold by life insurers. Even though most of us would have heard of National Pension Scheme India, it is commonly thought that this scheme is only for the Government employees, which is far from the truth.

From May 1, 2009, National Pension Scheme India was thrown open to all citizens of India, between the age of 18 and 60. But has it attracted interest among the common man?

It seems the Pension Fund Regulatory and Development Authority (PFRDA) has also taken note of this development. Recently, they set up an expert committee under the former SEBI chief, G.N. Bajpai, to review investment guidelines for the National Pension Scheme India, other than for Government employees. This has been done to make the National Pension Scheme India more attractive. This panel, expected to submit its report in 6 weeks, might recommend changes or even new schemes. So, expect better schemes and returns to come out of the kitty of National Pension Scheme India.

With AUM of more than Rs. 58,000 crore, National Pension Scheme India, with more schemes and plans, would be an ideal place to start your retirement planning with.

How to invest in National Pension Scheme India?

Investing in National Pension Scheme India is not a tedious task. All it takes is to approach an approved Point of Presence (POP) service provider. The PFRDA has authorized many banks, financial organisations and the Department of Posts to act as POP for National Pension Scheme India. The highly transparent schemes and simple to operate rules make National Pension Scheme India more alluring for the man on the street.

It’s never too late to start retirement planning. Walk in to the nearest POP of National Pension Scheme India and get ready for your autumn years.

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