SBI MF introduces retirement benefit fund

SBI Mutual Fund unveils retirement benefit plan

SBI Mutual Fund has unveiled SBI Retirement Benefit Fund offering four plans across risk profiles. The fund’s features include life cover subject to a maximum of ₹50 lakh per investor, option of two investment facilities of auto transfer to optimise retirement corpus and quarterly systematic withdrawal.

The fund offers four investment plans which includes 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 to the tune of up to 35% in Aggressive Plan, up to 15% in Aggressive Hybrid Plan and Conservative Hybrid Plan and up to 10% in Conservative Plan.

“This diversification of investment asset classes, from a longer-term investment horizon, would make managing investment risk more efficient,” SBI MF said. The 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,” it added.

The investment amount is locked in for five years or until retirement (i.e., completion of 65 years of age), whichever is earlier.

“Most of us give serious thought to retirement planning when it is too late to build a sizeable corpus for our needs. This may lead to a compromised lifestyle and emergency during medical situations. Starting allocation, albeit in a small way, earlier from the age of 30 years, and increasing it over time, gives a smart headway for the corpus to grow exponentially. SBI Retirement Benefit Fund, is an ideal fit,” said Vinay M Tonse, MD & CEO, SBI MF.

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Printable version | Mar 2, 2021 11:43:31 PM |

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