SBI Retirement Benefit Fund: Everyone needs a good retirement plan for a better life after retirement. But many people are facing difficulty in finding a good retirement plan for themselves. There are different retirement plans for different age groups; it gets confusing for people to decide which is the best plan for them. For example, a person’s retirement plan in his 30s must be different from a person in his 60s.
We know that it can be difficult to save for retirement, no matter your age. SBI Retirement Benefit Fund – Aggressive Plan Direct-Growth is a flexible way for you to maximize your savings and achieve your goals! In this article, we will have a complete overview of SBI Retirement Benefit Fund.
What is the SBI Retirement Benefit Fund?
The SBI Retirement Benefit Fund (SBIRBF) is an SBI retirement mutual fund scheme that provides a comprehensive retirement saving solution. This scheme invests in stocks and equity derivatives.
The SBIRBF was started on Feb 10, 2021. In one year, SBIRBF has given an annual return of 16.77%. This strong performance is due to its long-term diversified investments in major asset classes.
| Fund House | SBI Mutual Fund |
| Launch Date | 10-Feb-2021 |
| Return Since Launch | 12.05 |
| Benchmark | S&P BSE 500 TRI |
| Riskometer | Very High |
| Type | Open-ended |
| Assets | 779 Cr (As of 31-Mar-2022) |
| Expense | 1.02%(As of 31-Mar-2022) |
| Risk Grade | — |
| Return Grade | — |
| Turnover | – |
Investment Details of SBI Retirement Benefit Fund
The SBIRBF is open to all account holders with:
- Minimum Investment: ₹5,000
- Minimum Addl Investment: ₹1,000 and then ₹1
- Minimum SIP Investment: ₹500
- Minimum Withdrawal: ₹500
- Exit Load: 0%
- Term: 5 years of Lock-in period or Until retirement (Completion of 65 years), whichever is earlier. If you are 62 years of age, your Lock-in period will not be five years. You can exit the fund when you are 65 years of age.
7 Reasons Why SBI Retirement Benefit Fund Is Best Retirement Fund
1. Funds Diversification in:
The SBI Retirement Fund provides much diversification to the portfolio. Your funds are allocated in
- Equity
- Debt
- Gold ETF
- REITs and InvITs
- Foreign Securities
2. Four Different Plans SBI Retirement Benefit Fund
The SBIRBF offers four interesting plans:
- SBI Retirement Benefit Fund Aggressive
- SBI Retirement Benefit Fund Aggressive Hybrid
- SBI Retirement Benefit Fund Conservative Hybrid
- SBI Retirement Benefit Fund Conservative
SBI Retirement Benefit Fund Aggressive
| Asset Allocation | % Invested |
|---|---|
| Equity | 80% to 100% |
| Debt | 0% to 20% |
| Gold ETF | 0% to 20% |
| Units issued by REITS and InvITs | 0% to 10% |
The Aggressive plan can also invest in foreign securities, including overseas ETF.
- International ETFs Upto 35%
- Indian Equity 65% to 100%
SBI Retirement Benefit Fund Aggressive Hybrid
| Asset Allocation | % Invested |
|---|---|
| Equity | 65% to 80% |
| Debt | 0% to 35% |
| Gold ETF | 0% to 20% |
| Units issued by REITS and InvITs | 0% to 10% |
The Aggressive Hybrid plan can also invest in foreign securities, including overseas ETF.
- International ETFs Upto 15%
- Indian Equity 85% to 100%
SBI Retirement Benefit Fund Conservative Hybrid
| Asset Allocation | % Invested |
|---|---|
| Debt | 60% to 90% |
| Equity | 10% to 40% |
| Gold ETF | 0% to 20% |
| Units issued by REITS and InvITs | 0% to 10% |
The Conservative Hybrid plan can also invest in foreign securities, including overseas ETF.
- International ETFs Upto 15%
- Indian Equity 85% to 100%
SBI Retirement Benefit Fund Conservative
| Asset Allocation | % Invested |
|---|---|
| Debt | 80% to 100% |
| Equity | 0% to 20% |
| Gold ETF | 0% to 20% |
| Units issued by REITs and InvITs | 0% to 10% |
The Conservative plan can also invest in foreign securities, including overseas ETF.
- International ETFs Upto 10%
- Indian Equity 90% to 100%
3. No Exit Load
- There is no exit load in the scheme.
- Also, there is no exit load if you want to switch from one plan to another.
This is best when the equity market is high and you want to withdraw your funds’ equity investments and invest in debt funds.
4. Switching During Lock-in Period
Although there is a lock-in period of five years or until retirement (i.e., at the age of 65), you can still switch between plans. There is no exit load or extra charge for switching between plans within the lock-in period.
5. Two Investment Plans
- My Choice Plan
- Auto Transfer Plan
My Choice Plan
In My Choice Plan, you have the freedom to switch between your plans.
Auto Transfer Plan
The Auto Transfer Plan switches the invested assets to a plan of immediate lower risk as you get older. Suppose you enrolled in the SBI retirement fund at the age of 30; your funds are allocated in the Aggressive plan. When you get 40 years of age, your funds will be transferred to Aggressive Hybrid. Similarly, your plan will switch to Conservative Hybrid when you reach 50 years of age. And when you reach the age of 60, your plan will switch to Conservative.
6. SIP frequency
It offers six different SIP frequencies: Daily, Weekly, Monthly, Quarterly, Semi-Annually, Annually.
| SIP Frequency | Minimum SIP Investments |
|---|---|
| Daily | ₹500 |
| Weekly | ₹1000 |
| Monthly | ₹1000 |
| Quartly | ₹1500 |
| Semi-Annually | ₹3000 |
| Annually | ₹5000 |
7. SIP Insure Facility
The SBI Retirement Fund provides a SIP insurance facility. Under this facility, the investors are provided with a life insurance cover with their SIPs. If you start with a minimum SIP of ₹1000, you get life insurance for 18 to 52 years. But there is a condition. You have to opt for this facility and life insurance cover with SIPs of tenure of more than three years.
SIP Life Insurance Cover
The nominee gets an insurance cover of
| SIP Year | SIP Insurance Cover |
|---|---|
| 1st year | 20x |
| 2nd Year | 50x |
| 3rd Year | 100x |
| 4th Years | 100x |
For example, if you have started a SIP of ₹10,000, then for the first year nominee gets 20x which is ₹2,00,000. For the second year, the insurance cover is 50x, which is ₹5,00,000. Then for the third year, the insurance cover is 100x, which is ₹10,00,00. The nominee will get 100x of the monthly SIP installments from the fourth year.
The maximum cover limit is ₹50,00,000 per investor.
How to invest in the SBI Retirement Fund
If you are looking for a conservative and tax-efficient way to grow your retirement savings, the SBI Retirement Fund may be good. The fund is an aggressive plan that invests in stocks and bond products. This allows you to take advantage of rising prices while minimizing risk.
To invest in the fund, visit www.sbi.co.in/retirementfund/. You can also call the toll-free number 1800 222 444 or visit any of the over 7,200 branches of SBI Bank Ltd across India.
Benefits of investing in the SBI Retirement Fund
The SBI Retirement Fund is one of the most conservative investment options available. The fund has a current yield of 2.40%, which is significantly higher than most other funds on the market. Additionally, the fund invests in publicly-traded stocks and bonds, which provide diversification and stability.
The SBI Retirement Fund Aggressive Plan is the best option for those looking for aggressive growth and are willing to take high risk. However, those who are looking for a stable and conservative investment, the SBI mutual fund retirement benefit fund may be the perfect fit.
Conclusions
The SBIRBF – Aggressive Plan Direct-Growth is an aggressive plan that invests in various stocks and bonds. The fund has a good track record of outperforming the S&P 500 Index. The fund is volatility-sensitive, meaning that it adjusts its holdings based on changes in the market. As a result, it may not provide the same level of security as some other retirement funds. However, if you are looking for an aggressive investment with the potential for high returns, the SBI Retirement Fund – Aggressive Plan Direct-Growth may be the right choice for you.
FAQ
As per the SEBI guidelines, the SBI Retirement Benefit Fund – Aggressive Plan comes under high risk category.
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