Kochi, January 24: The Association of Mutual Funds in India (Amfi) has recommended to the Centre introduction of a long-term savings scheme exclusively for retirement benefit. Amfi has submitted a proposal in this regard to the government. Long-term savings for retirement benefit needs to be promoted as only 10 per cent of the community was covered under the government and other pension plans, Amfi chairman AP Kurian told reporters here.Kurien said he had met the finance secretary recently in Delhi to request the government to allow mutual funds to manage the funds under a separate scheme called Individual Retirement Scheme (IRS), which should be approved by Sebi.
The investment of funds of irs is so designed as to give alternate investment patterns to suit the risk-return profile of investors with the overall objective to maximise returns and minimise risk while ensuring that a minimum of 40 per cent of the funds remain invested in government securities. Three schemes have been suggested. As of now,Section 88 of the Income Tax Act, 1961, provides incentive for long-term savings in a variety of saving instruments such as Provident Fund, Public Provident Fund, Life Insurance polices, National Savings Certificate etc.
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