Pension mutual funds are the funds that are collected from various investors and are managed professionally. The collection of this fund is referred as pool and these pools are generally used for the investment in stocks, bonds and securities. These funds allow steady income for an individual after their retirement. The management of the funds is done by the fund managers and they are the one that use this fund for trading on regular basis.
On the other hand pension, pension funds are referred to the pool of assets and are done mainly to finance the pension plans. It also helps an investor to accumulate funds on long term basis so as to have steady income after their retirement. Regarding long term investing mutual funds are always considered to be the best option. So the two aspects of pension funds and mutual funds are combined to form pension mutual fund.
In this case people can have assured return on their investment and along with this they are also eligible to have steady monetary income after their retirement. One such financial institution that has come up with this innovative idea is Franklin Templeton Mutual funds. This plan has also been approved by the central government and it also eligible for tax benefits under section 88 of the Indian Income Tax Act.
Apart from offering steady income before and after the retirement, this fund also allows an individual to have tax rebate, which further translates to more savings. In Franklin Templeton’s Pension Mutual fund, the maximum investment limit is Rs. 70,000/-.