Retirement products promise stable yields, to enrich mutual funds

A recent CSRC circular offering guidance on investment in target retirement funds is expected to help develop mutual funds offering such products and guide investors on long-term financial plans for a safe post-retirement life, said analysts.

In its circular, the China Securities Regulatory Commission said target retirement funds will become part of mutual funds, and will be offered to investors in the manner of fund of funds or FoFs.

Such funds often either target a date, usually the date of retirement, or target a risk (yields or losses). This is done to encourage investors seeking stable yields to hold the product over the long term. Target retirement funds have been popular tools for retirement plans in several countries such as the United States and Canada.