SBI Retirement Benefit Fund : 10 things to know

SBI Mutual Fund has launched the new fund offer (NFO) of SBI Retirement Benefit Fund, a solution-oriented fund that offers four plans across risk profile. The fund allows an option to avail term insurance on SIPs. 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.


“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,” says Vinay M. Tonse, MD & CEO.

Here are the 10 things to know about SBI Retirement Benefit Fund:

1) SBI Retirement Benefit Fund is a solution-oriented fund where the investment amount is locked in for five years or until retirement (i.e., completion of 65 years of age), whichever is earlier.

2) The NFO of SBI Retirement Benefit Fund is open and will close on February 3, 2021.

3) The scheme will be managed by Gaurav Mehta (Equity), Dinesh Ahuja (Fixed Income) and Mohit Jain (Foreign Securities).

4) The fund has four investments plans across a range of risk-profile like Aggressive, Aggressive Hybrid, Conservative Hybrid and Conservative which invest across Equity and equity-related instruments, Debt instruments. Schemes may also invest in Foreign Equities, Gold ETFs and REITs/InVITs depending on the asset allocation & investment strategy.

5) SBI Retirement Fund offers two investment options– Auto transfer plan and My choice plan.

6) Auto Transfer Plan 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 e.g. – Investors up to 40 years of age will get the aggressive investment plan, between 40 – 50 years of age to get the Aggressive Hybrid investment plan, between 50 – 60 years of age to get the Conservative Hybrid investment plan and above 60 years of age to get the Conservative investment plan.

7) 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.

8) 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.

9) The fund offers a facility called, ‘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 cover would increase for the first three years, it will start from 20 times the monthly SIP installment or ₹50 lakh whichever lower of in the first year, 50 times of the monthly SIP amount in year two or ₹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.

10) 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.