Overview of SBI Retirement Benefit Fund

SBI Retirement Benefit Fund is an open-ended Retirement benefit scheme. The scheme has lock-in of 5 years or till retirement age, which ever is earlier.

Investment Objectives

The Objective of the scheme is to provide a comprehensive retirement saving solution that serves the variable needs of the investors through long term diversified investments in major asset classes.

Four types of plan launched under this scheme

1. SBI Retirement Benefit Fund- Aggressive Plan.

2. SBI Retirement Benefit Fund- Aggressive Hybrid Plan.

3. SBI Retirement Benefit Fund- Conservative Hybrid Plan.

4. SBI Retirement Benefit Fund- Conservative Plan.

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Who should invest into which plan?

• Investor's who are looking for long term capital appreciation and  investment in predominantly in equity and equity related instruments should invest in SBI Retirement Benefit Fund- Aggressive Plan.
  
  
  
• Investors who are looking for long term capital appreciation, investment predominantly in equity and equity related instruments, and balance in debt and money market instruments should invest in SBI Retirement Benefit Fund- Aggressive Hybrid Plan.
• Investors who are looking for long term capital appreciation, investment predominantly in debt and money market instruments and balance in equity and equity related instruments should invest in SBI Retirement Benefit fund- Conservative Hybrid Plan.
• Investors who are looking for long term capital appreciation, investment predominantly in debt and capital market instruments, and remaining equity and equity and equity related instruments should invest in SBI Retirement Benefit Fund- Conservative Plan.

Click here for understanding of Top 5 Advantages of Equity SIP

Riskometer

• SBI Retirement Benefit Fund- Aggressive Plan
• SBI Retirement Benefit Fund- Aggressive Hybrid Plan 
• SBI Retirement Benefit Fund- Conservative Hybrid plan

• SBI Retirement Benefit Fund- Conservative Plan.

Asset Allocation

The asset allocation for each plan of the scheme, under normal conditions, shall be as follows.

Aggressive Pan:

1. Allocation in  Equity and Equity related instruments including equity ETFs, derivatives and foreign securities minimum 80% and maximum 100%, risk ratio High.
2. Allocation in Debt Securities including debt ETFs, securitized debt including debt derivatives and money marketing instruments minimum 0% and maximum 20%, risk ratio Low to Moderate.
3. Allocation in Unit issued by REIT and InvITs minimum 0% and maximum 10%, risk ratio Medium to High, and commodities including gold and gold rated instruments including Gold ETFs minimum 0% and maximum 20%, risk ratio Medium to High.

The  scheme may seek investments opportunities in foreign securities including ADR/GDR/Foreign equity and overseas ETFs/ETNs and debt securities subject to Regulations. Such investment may not to exceed 35% f the net assets of the scheme.

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Aggressive Hybrid Plan

1. Equity and equity-related instruments, including equity ETFs, derivatives, and foreign securities, will have a minimum allocation of 65% to 80%, with a risk ratio of high, whereas debt securities, including debt EFTs, securitized debt, including debt derivatives, and money market instruments, will have a minimum allocation of 0% to 35%, with a risk ratio of low to moderate.
2. Unit issued by REITs and InvITs will have a minimum allocation of 0% to 10%, with risk ratio of Medium to High, whereas commodities including gold and gold related instruments including Gold ETFs, will have a minimum allocation of 0% to 20%, risk ratio of Medium to High.

The scheme may seek investment opportunities in foreign securities including ADR/GDR/Foreign equity and overseas ETF/ETN and debt securities subject to Regulations. Such investment may not exceed 15% of the net assets of the scheme.

Conservative Hybrid Plan

1. Equity and equity-related instruments, including equity ETFs, derivatives, and foreign securities, will have a minimum allocation of 10% to 40%, with a risk ratio of high, whereas debt securities, including debt EFTs, securitized debt, including debt derivatives, and money market instruments, will have a minimum allocation of 60% to 90%, with a risk ratio of low to moderate.
2. Unit issued by REITs and InvITs will have a minimum allocation of 0% to 10%, with risk ratio of Medium to High, whereas commodities including gold and gold related instruments including Gold ETFs, will have a minimum allocation of 0% to 20%, risk ratio of Medium to High.

The scheme may seek investment opportunities in foreign securities including ADR/GDR/Foreign equity and overseas ETF/ETN and debt securities subject to Regulations. Such investment may not exceed 15% of the net assets of the scheme.

Conservative Plan

1. Equity and equity-related instruments, including equity ETFs, derivatives, and foreign securities, will have a minimum allocation of 0% to 20%, with a risk ratio of high, whereas debt securities, including debt EFTs, securitized debt, including debt derivatives, and money market instruments, will have a minimum allocation of 80% to 100%, with a risk ratio of low to moderate.
2. Unit issued by REITs and InvITs will have a minimum allocation of 0% to 10%, with risk ratio of Medium to High, whereas commodities including gold and gold related instruments including Gold ETFs, will have a minimum allocation of 0% to 20%, risk ratio of Medium to High.

The scheme may seek investment opportunities in foreign securities including ADR/GDR/Foreign equity and overseas ETF/ETN and debt securities subject to Regulations. Such investment may not exceed 10% of the net assets of the scheme.

Benchmark Index

Each plan will have different benchmark.

Plans	Benchmark
Aggressive	BSE 500
Aggressive Hybrid	CRISIL Hybrid 35+60 –Aggressive Index
Conservative Hybrid	CRISIL Hybrid 65+35 –Conservative Index
Conservative	Nifty Composite Debt Index

Minimum Investment 

• The initial lump sum investment is 5000/-Rs., and subsequent investments are made in multiples of 1/-Rs.SIP investments start at 1000/-Rs. And increase in multiples of 1/-Rs.

Load Structure

• Entry Load- Not Applicable
• Exit Load- Redemption done before the lock in period then investors has to pay 1% of nav value.

Fund Manager

• Mr. Gaurav Mehta. (PGBM, IIM Lucknow, B.tech., IIT Bombay, CA, CPA)

Corporate Office, Trustee Company, Asset Management Company Address.

SBI Mutual fund, 9th Floor, Crescenzo, C-38 & 39, G Block, Bandra-Kurla, Complex, Bandra (East), Mumbai- 400051.

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TOP 5 ADVANTAGES OF EQUITY SIP.

Investment is a very essential for building a wealth and people need to do it with very discipline and systematically method. Nowadays, we all need to save 10% to 30% of our income in any investment schemes. Recently stock market performing well after corona and on 13th August 2020 Indian stock market cross 55000 landmarks. Here I am taking about STOCK SIP or EQUITY SIP in this article.

Equity SIP, like Mutual Fund SIP, is a particularly developed investing method that allows investors to invest in equities and equity indexes. It differs from typical stock market investments in that it provides specific benefits.

What is Equity SIP?

We are all know about SIP, and Equity SIP stands for setting up  a regular investment plan to invest in the equity market, as investor do for mutual funds. The result is building a wealth systematically average method system with minimizing a market risk over a period.

(also read:UTI Focused Equity Fund NFO, Nippon India Flexi cap Fund)

Equity SIP allowing investors to invest in stock market on regular basis. Now, many brokers are suggesting their client's to invest in stock SIP's through their platforms. Equity SIP's allow investors to put their funds in shares, index exchange-traded funds (ETFs), and gold exchange-traded funds in regular manner. Investor can invest their funds monthly basis instead of lump sum.

Because it invests substantially in high-yielding shares and stocks, as well as other traded commodities, equity SIP's can provide greater returns on investment than mutual funds.

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Advantages of Equity SIP

1. Reduces Risk because of Rupee Cost Averaging.

Rupee cost averaging is an approach in which investors invest a fixed amount of money at regular intervals. Investor now can enjoy rupee cost averaging benefits through Equity SIP's. Investors can invest their fund  monthly, weekly, and daily basis and avail stocks on different prices which provide them levarage of rupee costing averaging.

     2. Starting with small investments.

Investor can buy stocks on small investments with Equity SIP and build up their wealth systematically.

    3. Timing the market is not necessary.

With the Equity SIP's, investors do not have to watch the stock market every day and there is no need to depend on their brokers to provide them buying selling calls. 

    4.  Long term financial goal can be aligned with  Equity IP.

Investors can fulfil their long term financial goals with small investments by Equity SIP's like purchasing new car, home, children's education fees, and expensive world tours.

    5.  Disciplined approach towards Investment helps to control the emotions. 

Market volatility brings forth a range of emotions among investors. When the market runs up, there is a sense of excitement and euphoria among investors. And when it corrects, initial denial   gives fear and panic. But in Equity SIP's investors has no need to worry about correction in market due to systematic investment plan, investors kept going to invest their money in correction time to, and it will give them more profit  earning opportunities.

            

MUTUAL FUND- A NEW AGE WEALTH CREATOR

MUTUAL FUND- A NEW AGE WEALTH CREATOR

Mutual funds have shown to be the most effective asset for accumulating wealth. Due to the expansion of the Indian market and foreign investment, India is now on the verge of becoming a commercial hub as a result of the corona effect. Following Corona, all foreign investors and businesses are relocating their production facilities from China to India. According to the report, the Indian economy is recovering faster than other developed economies.

In compared to bank fixed deposits and other saving plans, mutual funds provide excellent returns to investors. All mutual fund companies gave returns ranging from 25% to 100% in 2020-2021. If someone invested Rs. 1,000,000 in March 2020, their gains would be nearly doubled now.

In reality, SEBI has raised the offshore investment ceiling for mutual fund companies from USD 600 million to USD 1 billion, with the total mutual fund sector limited at USD 7 billion. The increased ceiling would allow mutual funds to devote a larger portion of their assets to overseas securities. Following that, a slew of new NFOs (New Fund Openings) were launched, and mutual fund firms shifted their focus to global funds. This has a significant influence on investors as well.

Banks' fixed deposit rates, on the other hand, are steadily declining. According to a poll conducted last year, consumers should withdraw their assets from the bank and put them in a mutual fund. Yes, investing in mutual funds carries some risk, but as the famous dialogue from the web series Scam goes, "Risk hai to ishq hai," people choose to accept risks in exchange for better returns.

Finally, people are smart enough to capitalize their risk factors, and in the digital world, all results and investment details of any company are available in a single click, and anyone can invest in a fund by comparing results, so it can be concluded that mutual funds are the New Age Wealth Creator today in a real way.