Overview

• The industry body released a white paper with Crisil Intelligence proposing a Mutual Fund–Voluntary Retirement Account modeled on the US 401(k).
• The plan envisions a voluntary, employer-linked product managed by mutual funds with portability, tax incentives, and lifecycle investment options.
• Employers could choose to co-contribute, and withdrawals would generally be locked until retirement with hardship exceptions.
• AMFI has asked SEBI, the Central Board of Direct Taxes, and the labour and finance ministries to make the rule and tax changes needed to launch the product.
• AMFI cites the sector’s scale and governance, noting MF assets above Rs 75 trillion and 29 existing retirement schemes holding Rs 29,105 crore, alongside UN data pointing to rapid ageing.