The four investment plans of SBI Retirement Benefit Fund,amongst the existing 21 retirement schemesin the category from eight Fund Houses, are well diversified in terms of investment asset class that it would invest.
SBI Retirement Benefit Fund is an open-ended, retirement solution-oriented scheme where the investment amount is locked in for five years or until retirement (i.e. completion of 65 years), whichever is earlier. This scheme offers any day, daily, weekly, monthly, quarterly, semi-annual & annual systematic investment plan.
Starting early investing for retirement has its own benefits. For example, an investor starts to invest at an age of 30 and wants to accumulate Rs. 5 crores as retirement corpus, then the investor has to start an SIP for Rs 29,374 per month. If the decision is delayed by 5 years, SIP amount will increase to Rs 54,356 per month (Almost double) to accumulate the same amount of Rs 5 crores by retirement age. Similarly if the decision is delayed by 10 years, SIP amount will increase to Rs 1,05,057 per month (More than triple) to accumulate the same amount of Rs 5 crores by retirement age.It is clear from this example, that the cost of delaying retirement planning will require higher savings from investor that will keep on increasing constantly every year. Hence, it is advisable for an investor to start early and own a retirement plan in their late 20s and early 30s to have retirement corpus which will be able to fight inflation, rising medical cost, new threats, emergencies, change in lifestyle and lack of planning can mean compromise in lifestyle during the sunset years.
Amongst the other features SBI Retirement Benefit Fund offers include hassle-free convenience like Auto Transfer Plan, SIP Insure and SWP/SWP (A) facility are offered by the scheme.
The Fund Managers for the SBI Retirement Benefit Fund would be Mr. Gaurav Mehta (Equity), Mr. Dinesh Ahuja (Fixed Income) and Mr. Mohit Jain (Foreign securities).
