SEBI launches Life Cycle Funds for simplified retirement planning. These open-ended mutual fund schemes follow a goal-based approach with predetermined maturity dates ranging from five to thirty years. A life cycle fund automatically manages asset allocation across equities, debt, gold, silver ETFs, and InvITs, eliminating the need for investors to manually rebalance portfolios annually. Longer-tenure funds start with higher equity exposure of sixty-five to ninety-five percent, gradually shifting toward debt as maturity approaches. This glide path strategy reduces complexity for retail investors juggling multiple financial goals simultaneously. The framework addresses a critical gap by combining professional fund management expertise with automated rebalancing, potentially lowering capital gains tax implications from frequent portfolio adjustments.
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