Reliance Mutual to launch equity oriented pension scheme

Chennai, Jan 1 (IANS) Anil Ambani-led Reliance Group's fund house Reliance Capital Asset Management (RCAM) will come out with an equity oriented pension scheme with tax benefits in the middle of this month, an official said Thursday.

"We have all the approvals to launch the equity oriented pension scheme. The scheme will offer tax benefits (under section 80 C of the Income Tax Act) to investors and approval from the tax department is also there," RCAM chief executive Sundeep Sikka told IANS.

Not wanting to put any number as to amount of fund to be mobilised Sikka said the concept is new and there is good potential in the country.

He said only miniscule population is covered under organised pension scheme and there is good potential.

"The scheme would offer monthly as well as one time investment facility and pension would start when the investor turns 60 years of age," Sikka said.

Sikka said the two existing pension schemes from competition are debt oriented ones.

He said the proposed scheme would offer options for investments in equity and debt.

Globally pension is a big segment that provides long term fund for infrastructure development.

"The tax benefit is only the first trigger. The life expectancy in India has gone up. So people have to save for their post retirement life," Sikka said.