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SBI MF targets to collect Rs 2,000 crore, introduces retirement benefit fund

The scheme’s feature includes Term Insurance of up to Rs 50 lakh on SIPs.

SNS | New Delhi |

The SBI Mutual Fund has unveiled a scheme which will help create retirement corpus as it aims to raise up to Rs 2,000 crore from its investors.

SBI Retirement Benefit Fund, whose new fund offer got announced on Tuesday is retirement solution-oriented scheme offering an option of investing as per an investment plan as based on risk profile, a statement said.

The scheme’s feature includes Term Insurance of up to Rs 50 lakh on SIPs (systematic investment plan) and a facility for regular cash flows in dividend option which can be used for retirement planning, an official statement said.

SBI MF is targeting more than Rs 2,000 crore through this fund, an official said, adding the NFO will be opening on Wednesday and be open till February 3.

SBI MF’s managing director and chief executive 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. SBI Retirement Benefit Fund, is an ideal fit.”

The fund offers four types of investment plans including Aggressive, Aggressive Hybrid, Conservative Hybrid and Conservative.

Other than equity and debt instruments each plan may end up with 20 per cent exposure to Gold ETFs, up to 10 per cent exposure to REITs/InVITs and foreign securities, and 35 per cent of overseas ETF in Aggressive Plan; up to 15 per cent in Aggressive Hybrid Plan and Conservative Hybrid Plan and up to 10 per cent in Conservative Plan.