"We have proposed to offer three kinds of Individual Retirement schemes (IRS) in our letter to the finance ministry. These three options to be made available to investors will have different risk-return patterns based on various mixes of gilt funds, corporate bonds, money market instruments and equities," AMFI chairman AP Kurian told The Financial Express here. In a letter to the finance ministry, the mutual funds industry body asked the Centre to allow floating of separate pension schemes by mutual funds to cater to the needs of this growing segment, and appealed for granting tax concessions to make these long-term schemes more attractive.

Mr Kurian said, "However, to provide investors security, the scheme should maintain a minimum of 40 per cent of total invested funds in government securities". Under the IRS Plan `A', up to 90 per cent would be invested in government securities and/or dedicated gilt funds of mutual funds, and up to 10 per cent would be invested in money markets. The investments in government securities would be up to 50 per cent, investments in "AAA" rated corporate bonds would be up to 20 per cent, money market instruments would be 10 per cent and investments for equities of listed companies with five-year track record would be up to 20 per cent, under its IRS Plan "B".

Under the IRS Plan 'C', up to 40 per cent would be invested in government securities and/or dedicated gilt funds of mutual funds, up to 20 per cent in "AAA" rated corporate bonds, up to 10 per cent in money market instruments and up to 30 per cent in equities of listed companies with a five-year track record.