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SBI MF launches Retirement Benefit Fund

Our Bureau | Updated on January 19, 2021

Fund offers 4 investment plans-- Aggressive, Aggressive Hybrid, Conservation Hybrid and Conservative

SBI Mutual Fund aims to to raise ₹2,000 crore through its new fund offer-- Retirement Benefit Fund.The NFO opens on Wednesday and closes on February 3.

The solution-oriented fund offers four investment plans across risk profiles -- Aggressive (equity-oriented), Aggressive Hybrid (equity-oriented), Conservation Hybrid (debt-oriented) and Conservative (debt-oriented) -- and includes a life cover of up to ₹50 lakh per investor.

In addition to equity and debt instruments, every plan may take up to 20 per cent exposure to gold ETFs, 10 per cent exposure to REITs/InVITs and foreign securities, including overseas ETF to the tune of 35 per cent in Aggressive Plan, 15 per cent in Aggressive Hybrid Plan and Conservative Hybrid Plan and 10 per cent in Conservative Plan.

The investment objective of the scheme is to provide a comprehensive retirement saving solution. The investment amount is locked in for five years or until completion of 65 years of age, whichever is earlier.

Vinay M Tonse, Managing Director & CEO, said starting allocation at the early age of 30 years and increasing it over time, gives a smart headway for the corpus to grow exponentially.

DP Singh, Chief Business Officer, said market-linked retirement funds AUM at ₹11,944 crore is just about 0.38 per cent of the total mutual fund industry AUM, which makes most people hugely susceptible to ending up with very low retirement corpus.

There is a need to grow market-linked allocation to retirement planning and SBI Retirement Benefit Fund with its comprehensive need-based retirement solution is a perfect fit facilitating retirement financial planning to secure financial future, he said. SBI Mutual Fund is the leading mutual fund house with average AUM of ₹4.56 lakh crore as of December-end.

Published on January 19, 2021

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