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SBI Mutual Fund is launching a new fund offer (NFO) for SBI Retirement Benefit Fund. The opening date of the NFO is January 20, 2021, and the closing date is February 03, 2021.

What are Retirement Funds?

Retirement planning is probably the most common investment goal across investors in India. With ever-increasing costs of living, planning for retirement is essential to ensure financial independence post-retirement. Retirement Funds are designed to offer the investor a regular source of income after retirement. These funds allow investors to build a corpus for their retirement by investing according to their risk tolerance. 

Investment Objective

The SBI Retirement Benefit Fund is an open-ended scheme focused on providing a comprehensive retirement savings solution by investing in diversified asset classes with a long-term horizon. The fund has a lock-in period of five years or retirement age, whichever is earlier.

Invest in direct mutual funds

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  • SIP starting at ₹500

The scheme is being made available in four variants:

Variant Name Risk Level Asset Allocation
SBI Retirement Benefit Fund – Aggressive Plan Very High equity and equity-related instruments
SBI Retirement Benefit Fund – Aggressive Hybrid Plan High equity and equity-related instruments and a smaller part in debt and money market instruments
SBI Retirement Benefit Fund – Conservative Hybrid Plan Moderately High debt and money market instruments and a smaller part in equity and equity-related instruments
SBI Retirement Benefit Fund – Conservative Plan Moderate debt and money market instruments and a much smaller part in equity and equity-related instruments.

Asset Allocation

Since there are four variants to this scheme, the indicative asset allocation will differ for each variant.

Here is the proposed asset allocation for each plan of the scheme:

Aggressive Plan

Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Equity and Equity related instruments 80% 100% High
Debt, debt related instruments and money market instruments 0% 20% Low to Moderate
Units issued by REITs and InvITs 0% 10% Medium to High
Gold ETFs 0% 20% Medium to High

Aggressive Hybrid Plan

Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Equity and Equity related instruments 65% 80% High
Debt, debt-related instruments and money market instruments 0% 35% Low to Moderate
Units issued by REITs and InvITs 0% 10% Medium to High
Gold ETFs 0% 20% Medium to High

Conservative Hybrid Plan

Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Equity and Equity related instruments 10% 40% High
Debt, debt related instruments and money market instruments 60% 90% Low to Moderate
Units issued by REITs and InvITs 0% 10% Medium to High
Gold ETFs 0% 20% Medium to High

Conservative Plan

Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Debt, debt-related instruments and money market instruments 80% 100% Low to Moderate
Equity and Equity related instruments 0% 20% High
Units issued by REITs and InvITs 0% 10% Medium to High
Gold ETFs 0% 20% Medium to High

Benchmark

Benchmark is basically a stock market index that is used as a reference point to compare the performance of a mutual fund scheme.

Here are the benchmarks for each plan of this scheme:

Plan Benchmark
Aggressive S&P BSE 500 TRI
Aggressive Hybrid CRISIL Hybrid 35+65 -Aggressive Index
Conservative Hybrid CRISIL Hybrid 65+35 – Conservative Index
Conservative NIFTY Composite Debt Index

Fund Details

The SBI Retirement Benefit Fund has four plans namely, Aggressive, Aggressive Hybrid, Conservative Hybrid, and Conservative. Each plan is available in the Regular or Direct variant. Further, each plan has a Growth and Dividend option. 

Other Details

Scheme Name SBI Retirement Benefit Fund
Type of Scheme  An open-ended retirement solution-oriented scheme
Lock-in  Lock-in of 5 years or till retirement age (whichever is earlier)
Benchmark
  • Aggressive – S&P BSE 500 TRI
  • Aggressive Hybrid – CRISIL Hybrid 35+65 -Aggressive Index
  • Conservative Hybrid – CRISIL Hybrid 65+35 – Conservative Index
  • Conservative – NIFTY Composite Debt Index
NFO Dates Opening Date – January 20, 2021

Closing Date – February 03, 2021

Fund Managers Mr. Dinesh Ahuja (for debt portion)

Mr. Gaurav Mehta (for equity portion)

Mr. Mohit Jain (for managing overseas investments)

Minimum Investment

Size Initial Purchase

Rs. 5,000/- and in multiples of Re.1 thereafter
Additional Purchase Rs. 1,000/- 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
Plans Aggressive, Aggressive Hybrid, Conservative Hybrid, and Conservative. Also, each plan is available as a Regular or Direct plan.
Options Growth and Dividend options (Payout and Transfer)

Fund Managers

Gaurav Mehta

Gaurav Mehta comes with an experience of around 14 years in the financial sector. He began his career with Edelweiss Capital in May 2006 and went on to work with Ambit Capital as a Research Analyst and Ambit Investment Advisors as a Portfolio Manager. He joined SBI Funds Management Private Limited (SBIFMPL) in November 2018 as an Equity analyst. 

Currently, he is managing one more fund with SBI MF – SBI Multi-Asset Allocation Fund.

Dinesh Ahuja

Mr. Ahuja has extensive experience of over two decades. He has worked as a fund manager with L&T Investment Management Limited before joining SBI MF. He specializes in managing debt schemes. In his previous roles, he was associated with Reliance Asset Management Ltd. and Reliance General Insurance Co. Ltd.

Other funds managed by him are:

  • SBI Magnum Income Fund
  • SBI Magnum Gilt Fund
  • SBI Dynamic Bond Fund
  • SBI Magnum Medium Duration Fund
  • SBI Magnum Constant Maturity Fund
  • SBI Debt Hybrid Fund (debt portion)
  • SBI Equity Hybrid Fund (debt portion)
  • SBI-ETF 10 year Gilt
  • SBI Magnum Children’s Benefit Fund – Investment Plan (debt portion).

Mohit Jain

Mr Jain joined the AMC in 2015. He has more than 8 years of experience in financial services. Prior to joining SBI MF, he was working as a research analyst with Crisil. He is a dedicated fund manager for managing overseas investments of the schemes that have a mandate to invest abroad.

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Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.