NFO: SBI Retirement Benefit Fund

The new fund offer is from January 20 till February 3, 2021.
By Morningstar |  19-01-21 | 

SBI Mutual Fund has launched SBI Retirement Benefit Fund, a solution-oriented fund that offers four plans across risk profiles.

The fund offers four investment plans – Aggressive (equity-oriented), Aggressive Hybrid (equity-oriented), Conservation Hybrid (debt-oriented) and Conservative (debt-oriented).

In addition to equity and debt instruments, every plan may take up to 20% exposure to Gold ETFs, up to 10% exposure to REITs/InVITs and foreign securities including overseas ETF up to 35% in Aggressive Plan, up to 15% in Aggressive Hybrid Plan and Conservative Hybrid Plan and up to 10% in Conservative Plan.

The investment objective of the scheme is to provide a comprehensive retirement saving solution that serves various financial needs of investors through long-term diversified investments in major asset classes. The investment amount is locked in for five years or until retirement (i.e., completion of 65 years of age), whichever is earlier.

The fund offers Auto Transfer Plan which allows age-based transfer of accumulated corpus to a suitable investment plan. Invested assets will be automatically switched to the investment plan of immediate lower risk as the investor crosses the maximum age-associated to their current investment plan. For instance, investors up to 40 years of age will get the aggressive investment plan, between 40 – 50 years of age will get the aggressive hybrid investment plan, between 50 – 60 years of age will get a conservative hybrid investment plan and above 60 years of age will get the conservative investment plan.

Under the ‘My Choice’ facility, the investor can choose which plan he would like to invest in, irrespective of his/her age and may continue investing in the same plan even if eligible to switch over to a plan in the next low-risk age bracket.

Under monthly SIPs registered under SBI Retirement Benefit Fund with a tenure of three years and above, the investor may opt for term insurance cover which would benefit the registered nominee in an unfortunate event. The insurance coverage would increase for the first three years, it will start from 20 times the monthly SIP installment or Rs 50 lakh whichever lower in the first year, 50 times of the monthly SIP amount in year two or Rs 50 lakh whichever lower and then goes up to 100 times or Rs 50 lakh whichever is lower of the monthly SIP installment from third year onwards.

Investors can also avail SWP/SWP facility to withdraw from the accumulated corpus in a systematic manner, subject to the lock-in period. This facility can help the investor to create a customized cash flow to meet his expenses post-retirement, at the same time allowing the remainder of the corpus to grow and provide market-linked returns.

The fund managers for the SBI Retirement Benefit Fund would be Gaurav Mehta (Equity), Dinesh Ahuja (Fixed Income), and Mohit Jain (Foreign Securities).

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