A new scheme has been announced by SBI. SBI Mutual Fund has launched Retirement Benefit Fund. Job seekers and others who want to save for retirement can earn good money by investing in SBI Mutual Fund’s new scheme. Investments in the new fund offer can be made until February 3rd. SBI Retirement Benefit Fund is a Solution Oriented Fund. Which is offering 4 in the risk profile. The scheme also offers term insurance cover of up to Rs 50 lakh to investors through SIPs. Apart from this there are also many benefits. Such as dividend option and SWP facility and quarterly withdrawal facility.
What is this scheme?
Simply put, SBI Retirement Benefit Fund Scheme is an NFO i.e. New Fund Offer. The name of this scheme is SBI Retirement Benefit Fund Solution Oriented Scheme. Investments can be made till February 3 and a minimum investment of Rs 5,000 is possible. NFO is a new scheme of an asset management company. Through which a mutual fund company collects money from investors to invest in shares, including government bonds.
These benefits will come from the scheme
According to a report, the scheme will be jointly managed by Gaurav Maheka (equity i.e. stock market), Dinesh Ahuja (fixed income) and Mohit Jain (foreign security i.e. foreign stock market and bonds). This fund offers 4 investment plans. These include Aggressive (Equity Oriented i.e. Stock Market Based), Aggressive Hybrid (Equity Oriented i.e. Stock Market Based), Conservation Hybrid (Debt Oriented i.e. Bond Based) and Conservative (Debt Oriented i.e. Bond Based). In addition to the stock market and bond market, each plan is ready to invest up to 20 per cent in gold ETFs and up to 10 per cent in REIT / InVIT.
“Investors in mutual funds will get higher returns here than FDs,” the expert said. Simply put, an annual gain of more than 10 per cent can be easily achieved. While FDs currently get only 5 per cent annual return. SBI Mutual Fund also offers term insurance of Rs 50 lakh. You can opt for term insurance for a period of more than 3 years. Compensation of up to Rs 50 lakh is given for the accident. Insurance cover will increase in 3 years. Insurance cover will also be free if you register for more than 3 years through SIP.
There is a charge for investing
The expense ratio of the NFO’s aggressive plan is 2% in the regular option. In the case of the Conservative Plan, this is 1-1.25 per cent. Simply put, the expenses of a mutual fund house (asset management company) are included in the expense ratio. The ratio is determined on this basis only. With this people question SWP. Which is a feature of a systematic withdrawal plan. Through which investors can recover a fixed amount from a mutual fund. Investors decide for themselves how long it will take to get their money back. You can work on a monthly or quarterly basis, but people place more emphasis on the monthly option. Investment cars can take a fixed amount or only capital gains whatever they want.
Money can be withdrawn in the meantime
The Retirement Benefit Fund Solution Oriented Scheme also offers the facility that investors can use the SWP facility on the dividend option. The investment amount can be withdrawn systematically on a quarterly basis. But this will be under lock-in period. This facility helps investors to meet their expenses after retirement. Investors get many options under the scheme, depending on which plan they want to invest in. There is also a facility to transfer the retirement corpus to the appropriate plan according to age. People up to 40 years will get Aggressive Investment Plan, 40-50 year olds will get Aggressive Hybrid Investment Plan, 50-60 year olds will get Conservative Hybrid and people above 60 years will get Conservative Plan. This plan will double the benefits.