Chennai: SBI Mutual Fund has announced the SBI Retirement Benefit Fund, a solution-oriented fund that offers four plans across risk profiles offering a comprehensive value proposition in terms of exclusive features like life cover up to a maximum of Rs. 50 lakh per investor, option of two investment facilities of auto transfer to help optimise the retirement corpus and my choice, and quarterly systematic withdrawal facility (post applicable lock-in of five years of attainment of retirement age, whichever lower).
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 to the tune, 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.
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.
Vinay M Tonse, MD & CEO, said: “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, given its construct of being not only well-diversified across major asset-classes, be it equity, debt, Gold ETF, REITs/InVITs and foreign securities, but also offering schemes with risk profile of choice coupled with rising insurance cover.”