Encouraged by tax incentives for investment in retirement schemes floated by mutual funds, several fund houses, including IDBI MF and Birla Sun Life MF, DSP Blackrock MF, Axis MF and SBI MF have approached capital markets regulator Sebi to launch retirement-linked mutual funds.

Reliance Capital Asset Management Company, had taken the government's approval for the first-ever equity-oriented pension scheme, in December last year, giving tax benefits to investors.

Retirement funds floated by fund houses have been given tax benefits in line with pension funds to attract long-term domestic savings into the equity market in the Budget presented last year.

Earlier, only insurance companies were allowed to offer pension products with tax incentives. Investments in these schemes are eligible for a deduction under Section 80 C of Income Tax Act up to a limit of Rs1.5 lakh.

Earlier, only two fund houses had floated retirement-linked pension plans - Franklin Templeton Pension Fund and UTI Retirement Benefit Pension Fund -- but these are heavily-oriented towards debt.

IDBI MF filed its draft documents with Sebi last week to become the latest fund house to approach the capital markets regulator to launch retirement product. IDBI Retirement Savings Fund is an open-ended scheme offering two plans for investment --Capital Builder Plan and Income Generator Plan.