SBI Mutual Fund launches SBI Retirement Benefit Fund

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By Ashish Mitra --
Friday, 22 Jan, 2021

SBI Mutual Fund has come out with a solution-oriented retirement-linked mutual fund that will give you term insurance up to a maximum of Rs 50 lakh free of cost. The new fund offer named SBI Retirement Benefit Fund that has hit the market today will stay open till February 3.

"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," says SBI Mutual Fund in a statement.

The fund has four investment plans across a range of risk-profile -- Aggressive, Aggressive Hybrid, Conservative Hybrid and Conservative. The scheme aims to take exposure in foreign equities, gold ETFs and REITs/InVITs beyond domestic equities and debt instruments.

"In addition to Equity and Debt instruments, every plan may take up to 20 per cent exposure to Gold ETFs up to 10 per cent exposure to REITs/InVITs and foreign securities including overseas ETF to the tune, up to 35 per cent in Aggressive Plan, up to 15 per cent in Aggressive Hybrid Plan and Conservative Hybrid Plan and up to 10 per cent in Conservative Plan," says SBI Mutual Fund.

The scheme comes with an age-based 'auto transfer plan' in which invested assets will be automatically switched to the investment plan of immediate lower risk as the investor crosses the maximum age associated with their current investment plan.

Moreover, SIPs registered under this with a tenure of three years-plus has insurance benefits. In case of an unfortunate event, the nominee stands to get the benefits to the tune of 20 times the monthly SIP installment in year one, 50 times in year two and 100 times in year three and year four onwards.

For example, if you start a monthly SIP of Rs 5,000, your insurance coverage will be Rs 1 lakh in year one, Rs 2.5 lakh in year two and Rs 5 lakh in year three and four year onwards.

After the lock-in period is over, you may manage your cashflow with the help of Systemic Withdrawal Plan (SWP) feature but it will only available in the dividend option of the scheme. "Withdrawals will be made/ effected on the 25th of every month of that particular quarter and would be treated as redemptions," says the fund house.

SBI Mutual Fund launches SBI Retirement Benefit Fund. SBI Mutual Fund has come out with a solution-oriented retirement-linked mutual fund that will give you term insurance up to a maximum of Rs 50 lakh free of cost. The new fund offer named SBI Retirement Benefit Fund that has hit the market today will stay open till February 3.

"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," says SBI Mutual Fund in a statement.

The fund has four investment plans across a range of risk-profile -- Aggressive, Aggressive Hybrid, Conservative Hybrid and Conservative. The scheme aims to take exposure in foreign equities, gold ETFs and REITs/InVITs beyond domestic equities and debt instruments.

"In addition to Equity and Debt instruments, every plan may take up to 20 per cent exposure to Gold ETFs up to 10 per cent exposure to REITs/InVITs and foreign securities including overseas ETF to the tune, up to 35 per cent in Aggressive Plan, up to 15 per cent in Aggressive Hybrid Plan and Conservative Hybrid Plan and up to 10 per cent in Conservative Plan," says SBI Mutual Fund.

The scheme comes with an age-based 'auto transfer plan' in which invested assets will be automatically switched to the investment plan of immediate lower risk as the investor crosses the maximum age associated with their current investment plan.

Moreover, SIPs registered under this with a tenure of three years-plus has insurance benefits. In case of an unfortunate event, the nominee stands to get the benefits to the tune of 20 times the monthly SIP installment in year one,  50 times in year two and 100 times in year three and year four onwards.

For example, if you start a monthly SIP of Rs 5,000, your insurance coverage will be Rs 1 lakh in year one, Rs 2.5 lakh in year two and Rs 5 lakh in year three and four year onwards.

After the lock-in period is over, you may manage your cashflow with the help of Systemic Withdrawal Plan (SWP) feature but it will only available in the dividend option of the scheme. "Withdrawals will be made/ effected on the 25th of every month of that particular quarter and would be treated as redemptions," says the fund house.