Tata Mutual Fund announced the launch of a three plan retirement savings scheme — Tata Retirement Savings Fund. The new fund offer for the scheme opens on October 7 and will close on October 21.

Investors can choose from three different plans offered by the fund, depending on their age and their risk preferences. The three plans are — Progressive Plan, an open ended equity scheme; Moderate Plan, an open ended equity scheme; and Conservative Plan, an open ended debt scheme.

The Progressive Plan will be for investors below the age of 45 years and will have 85-100 per cent of its assets in equity instruments. The Moderate plan is for investors between the age group of 45-60 and will have 65-85 per cent in equity-related instruments. The conservative plan will invest only in debt-related instruments and is for investors over the age of 60 years.

The fund comes with an “Auto-Switch” feature which does away with “the hassles of adjusting the equity-debt proportion with increasing age,” said a release from the fund house.

The fund has an exit load of five per cent for redemptions within one year of allotment of units, four per cent for redemptions within two years, three per cent for redemptions within three years, two per cent for redemptions within four years and one per cent for redemptions within five years. There will be no exit load for redemptions after five years of allotment.