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7.2.2
Maintenance for IRA Processing
Funds
You must define IRA processing rules for each fund of your AMC into which you wish to allow
IRA investments. These guidelines include whether IRA investments are allowed into the
fund, and the volume limits that would apply to such IRA transactions into the fund.
For a detailed description of the rules maintained for funds, which pertain to IRA
transactions, refer the chapter Setting Up Funds, in the Fund Setup user manual.
Product Types
You should maintain the different types of products that your AMC offers to investors, for IRA
transactions. You can define different attributes for each product type.
Products
You must define each of the products that your AMC offers, with the processing guidelines
that will apply to any plans or policies purchased under the product. As with product types,
you can tailor the attributes of the products to suit your requirement
Typically, when you define a product, you associate the funds that would be part of the
product portfolio. Processing guidelines for IRA transactions must be defined for each of the
funds that you have associated.
7.2.3
Plans for IRA
When an investor buys an IRA plan in one of the retirement products floated by your AMC,
you can maintain the details of the plan in the system. All the processing guidelines and
details maintained for the product under which the plan was purchased will apply to the plan.
You can, however, make appropriate changes as necessary, to the guidelines when you
maintain the details of the plan in the system.
7.2.4
Investment Transactions in IRA Plans
An investor who subscribes to a retirement plan subscribes an initial amount, which may or
may not be increased during the tenor of the plan. Contributing additional investments during
the tenor of the plan can increase in the investment amount, provided additional investments
are allowed for the product in which the plan is purchased. If the product involves a product
type for which premiums are also applicable, the investment can also be increased by
premiums.
Therefore, the following inflow investments could occur into an IRA plan:

An initial investment

Additional investment (if allowed for the product in which the plan is subscribed)

Premiums (if premiums are allowed for the product in which the plan is subscribed)
Earnings from the investment could be availed through partial or complete withdrawals, or
through annuities, provided withdrawals and annuities are applicable for the product in which
the plan is subscribed.
You can enter and process each of these transactions in the system.
Each of the transactions, when requested, could be directed into any of the funds opted for
by the investor, in the product under which the plan was purchased. All the transaction
processing guidelines specified for the product (and the plan) will be applied to the
transaction. Also, the limits maintained for the fund in which the transaction is requested, will
also be validated.
For further information refer to the Life and Endowment Product User Manual
7-2