Hello Readers! 

Retirement planning, we rarely think about this in the early years of our career, and suddenly this strikes our mind when we cross 30 or 35 years in age. Ultimately this put much pressure on individuals as they are left with less time and a big corpus to create for their happy retirement days!

Well, to ease your retirement planning, the largest asset manager SBI Mutual Fund has launched its New Fund Offer (NFO) named SBI Retirement Benefit Fund. The objective of the fund is to provide a comprehensive retirement saving solution that will help cover various financial needs of individuals through long-term diversified investments in major asset classes.


Basic Details Of The NFO!

The SBI Retirement Benefit Fund NFO launched by SBI Mutual Fund, opens for subscription, today and will close on 3rd February 2021.

  • Scheme Name: SBI Retirement Benefit Fund
  • Fund Type of Scheme: An open-ended retirement solution-oriented scheme
  • Lock-in Period: The scheme has a lock-in period of five years.
  • Fund Managers:  Mr. Dinesh Ahuja (for debt portion), Mr. Gaurav Mehta (for equity portion), and Mr. Mohit Jain (for managing overseas investments)
  • Minimum Investment: Rs. 5,000/- and in multiples of Re.1 thereafter
  • Minimum Monthly SIP Application Amount: 
    • Minimum Rs. 1000 & in multiples of Re. 1 thereafter for a minimum of 6 months
    • Minimum Rs. 500 & in multiples of Re. 1 thereafter for a minimum of 12 months
  • Minimum Redemption Amount: Rs.500/- or 1 unit or account balance whichever is lower
  • Entry Load: Not Applicable
  • Exit Load: Nil

The new NFO is available in four variants, Aggressive, Aggressive Hybrid, Conservative Hybrid, and Conservative.


Key Feature Of The NFO!

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. SIP’s registered in this NFO with a tenure of three-year plus, will give double benefit, a big corpus plus insurance coverage. The insurance benefits under the SIP plan in the new NFO is like, 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 10,000, your insurance coverage will be Rs 2 lakh in year one, Rs 5 lakh in year two, and Rs 10 lakh in year three and four years onwards.

After the lock-in period overs, investors can manage their cash outflows through the Systematic Withdrawal Plan (SWP) feature of the fund. Well, it is important to note that the SWP feature in this dividend is available for those opting for the dividend option of the scheme.


What SBI Official Have To Say About This NFO?

Managing director and Chief Executive of SBI Mutual Fund, Vinay M Tonse 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”.

Further, an official from SBI said that, through this new NFO, SBI Mutual Fund is targeting a corpus of around Rs 2,000 crore. The chief business officer D P Singh said, “India is expecting a large young population to move to the aging population in the next 30 years, keeping this in mind we have featured our new NFO, so that it can provide a solution to build a suitable retirement corpus for such individuals”.


Should one Invest In This NFO?

If you are looking for hassle-free retirement planning with a disciplined approach to it, SBI Retirement Benefit Fund could be a good option. The five-year lock-in will ensure that you stay committed to your retirement goal, while exposure to foreign equities may make the returns enticing.

The 'auto transfer' feature will help you manage your investments as per your age. With this feature, you do not need to worry about your asset allocation changes that you need to do manually as per your age and goal requirements. With the 'auto transfer' in the scheme, you can be assured that the fund house will take care of the asset allocation in your portfolio.

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.


Happy Investing!


(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).