SBI MF targets to collect Rs 2,000 crore from retirement scheme

The largest asset manager SBI Mutual Fund on Tuesday said it is targeting to raise up to Rs 2,000 crore from investors through a newly launched scheme which will help create retirement corpus.

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 offers an option to avail 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.

“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,” its managing director and chief executive Vinay M Tonse said.

India is also expected to move from a predominantly young population to an ageing population in the next 30 years and the fund is specifically designed as a solution to build a suitable retirement corpus for such individuals, its chief business officer D P Singh said.