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SBI Mutual Fund (MF) unveiled ‘SBI Retirement Benefit Fund’ with four plans across risk profiles.
SBI Mutual Fund (MF) on Tuesday unveiled ‘SBI Retirement Benefit Fund’ with four plans across risk profiles -- aggressive (equity-oriented), aggressive hybrid (equity-oriented), conservation hybrid (debt-oriented) and conservative (debt-oriented).
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This product, SBI Mutual Fund said in a statement, offers a comprehensive value proposition in terms of exclusive features like life cover up to a maximum of Rs 50 lakh per investor, the option of two investment facilities of auto transfer to help optimize the retirement corpus and investor’s choice, and quarterly systematic withdrawal facility (post applicable lock-in of five years of attainment of retirement age, whichever lower).
“In addition to equity and debt instruments, every plan may take up to 20 percent exposure to gold ETFs, up to 10 percent exposure to REITs/InVITs and foreign securities including overseas ETF to the tune, up to 35 percent in the aggressive plan, up to 15 percent in aggressive hybrid plan and conservative hybrid plan and up to 10 percent in the conservative plan,” the company said.
“This diversification of investment asset classes, from a longer-term investment horizon, would make managing investment risk more efficient,” it added.
The investment objective of the scheme, according to SBI Mutual Fund, 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.
Amongst the features, 'SBI Retirement Benefit Fund' includes auto-transfer plan which allows the 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 e.g. – investors up to 40 years of age will get the aggressive investment plan, investors between 40-50 years of age will get the aggressive hybrid investment plan, investors between 50-60 years of age will get the conservative hybrid investment plan and above investors above 60 years of age will get the conservative investment plan, according to SBI Mutual Fund.
Under the ‘My Choice’ facility, the investor can choose which plan he/she 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.
With SIP Insure – 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 uniqueness of SIP Insure is that 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 of in the first year, 50 times of the monthly SIP amount in year two or Rs 50 lakh whichever lower of and then go up to 100 times or Rs 50 lakh whichever lower of the monthly SIP installment from third year onwards.
Investors can also avail SWP/SWP(A) facility offered by the scheme, 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 company mentioned.