SBI Mutual Fund has introduced SBI Mitra SIP. The SBI Mitra SIP is a tool that combines SIP and SWP in a combination. Thus, Mitra SIP is a powerful tool /readymade solution to get a monthly income after the completion of the SIP duration.
Thus enabling the investors to create a comprehensive financial solution that can be used effectively to plan for investors future goals such as monthly income in post retirement days.
Read more: Why retirement planning is important
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Table of Contents
What is Mitra SIP in SBI?
Here, in Mitra SIP one needs to start a Minimum monthly SIP (amount will be same as mentioned in a respective scheme – usually Rs 500/1000) for 8/10/12/15 years and after completion of the chosen duration, can take fixed monthly withdrawals through SWP option.
Read more about SIP/ SWP and STP
Please refer to monthly income chart mentioned below
How Mitra SIP works
In Mitra SIP one needs to start a SIP in a source scheme ( MF scheme of your choice) for 8/10/12 or 15 years and after completion of this period, one can take income through a Systematic withdrawal plan (SWP).
The above table gives the maximum monthly income amount however one can also choose a lower amount too.
- Choose source Scheme ( SIP MF fund)
- Choose investment duration
- Choose SWP Scheme
- Choose SWP amount
Thus enabling the investors to create a comprehensive financial solution that can be used effectively to plan for investors future goals such as monthly income in post retirement days.
Read more: Why retirement planning is important
What is Mitra SIP in SBI?
Here, in Mitra SIP one needs to start a Minimum monthly SIP (amount will be same as mentioned in a respective scheme – usually Rs 500/1000) for 8/10/12/15 years and after completion of the chosen duration, can take fixed monthly withdrawals through SWP option.
Read more about SIP/ SWP and STP
Please refer to monthly income chart mentioned below
How Mitra SIP works
In Mitra SIP one need to start a SIP in a source scheme ( MF scheme of your choice) for 8/10/12 or 15 years and after completion of this period one can take income through Systematic withdrawal plan (SWP).
The above table gives the maximum monthly income amount however one can also choose a lower amount too.
- Choose source Scheme ( SIP MF fund)
- Choose investment duration
- Choose SWP Scheme
- Choose SWP amount
SIP Pros & Cons – What YOU Must Know?
What are the source scheme for Mitra SIP?
The below table depicts the SIP scheme one can choose for SIP and SWP. However, one is free to opt for same scheme for both SIP and SWP.
What are the source scheme for Mitra SIP?
The below table depicts the SIP scheme one can choose for SIP and SWP. However, one is free to opt for same scheme for both SIP and SWP.
You can choose the source scheme from the below-mentioned options. However, You can only choose from Equity, Dynamic Asset allocation, Index and balanced funds.
This also mean you can choose the equity, hybrid or dynamic funds in accumulation phase. However, at the time of withdrawal either you can shift the amount to a debt or conservative hybrid fund or equity large cap, multi asset, equity savings and balanced advantage fund type.
Otherwise you can also opt to remain in same fund also.
FAQs
- Only growth option is available in source scheme for both SIP and SWP.
- The SWP scheme can be chosen from the table given above or one can take SWP from the target scheme only ( the scheme in which SIP was started).
- Upon maturity the entire amount will be shifted to SWP scheme or remain in same scheme ( SIP scheme) as chosen by the investor.
- SWP ( monthly income) will start from next month onwards after completion of SIP duration.
- In case no SIP tenure chosen, the default duration is 12 year and SIP date is 10 th of every month.
- The default SWP scheme is SBI Short Term Debt Fund ( if not chosen)
- SWP Date will be same as SIP date.
- One can choose to increase the SIP amount every year by opting top up option.
- Under single folio one can have multiple registration under this facility.
- The facility is not available for minor investors and under demat mode.
What are the benefits of Mitra SIP Plan
The SIP Mitra SBI Plan is a powerful way to get a constant income in later days of one’s life.
It’s a readymade solution for those who want to invest and take advantage from their investment without worrying too much about the performance of the scheme.
- Helps Build long term wealth for financial independence
- Inculcates habit of systematic investments through SIP plus seeks to reap benefits from regular cash flow through SWP
- One stop Solution for goal based investing
- Offers wide alternatives of source and target schemes to choose based on one’s risk appetite and requirements
- Eliminates excess unwanted withdrawal due to predefined monthly as a limit as a multiple of SIP installments.
WHY SBI SIP Mitra?
Getting constant and regular income in post retirement days is the need of the hour or maybe one needs a constant monthly tuition fee or pocket money for his/her child or income for dependent parents.
Mitra SIP SBI is a unique combination of SIP and SWP wherein one can pay on monthly basis for a few years and after completion of duration, can take withdrawals on monthly basis.
Basically this SIP Mitra eliminates the ifs and buts factor from one’s investment and provides a readymade solution for monthly income one may need in future.
What if you stop payment in between
On cancellation of SIP before the end of tenure, the switch trigger and SWP will cease. This also means you are the boss and you can withdraw exit or make any changes as you want.
In case, redemption/switch out processed in source scheme during the SIP tenure, the switch trigger and SWP will cease, however SIP shall continue in same fund as normal SIP.
Illustration Of Mitra SIP SBI
Illustration as provided by SBI Mutual Fund:
An investor making SIP investment in source scheme assuming growth rate @12% and SWP from a Target Scheme assuming growth rate@8%
Disclaimer: SBI SIP Mitra is an optional facility offered by SBI Mutual Fund. This feature does not in anyway give assurance of the performance of any of the scheme of SBI mutual fund or provide any guarantee of withdrawal through SWP mode. Mitra SIP allows investors to switch the SIP investment to a target scheme, post-completion of the SIP tenure and monthly SWP will continue from the target scheme. The investor may select any other SWP amount but is restricted to the multiples mentioned above and will be based on the initial SIP installment. For more details please read scheme information document and the terms and guidelines of the application form carefully
Best SBI Mutual Fund for SIP
SBI Mutual fund have many good funds with proven track record. Some of the best SBI mutual fund SIP are as follows:
| Category | Fund Name | Risk | Return 3 Years | AUM |
| Mid Cap Fund | SBI Magnum Midcap Fund – Regular Plan – Growth | Very High | 34.85 | 13,244.51 |
| Large & Mid Cap Fund | SBI Large & Midcap Fund – Regular Plan – Growth | Very High | 27.38 | 15,705.95 |
| Aggressive Hybrid Fund | SBI Equity Hybrid Fund – Regular Plan – Growth | Very High | 17.27% | 60,591.27 |
Small Cap Fund | SBI Small Cap Fund – Regular Plan – Growth | Very High | 32.92% | 21,319.60 |
| Focused Fund | SBI Focused Equity Fund – Regular Plan – Growth | Very High | 22.44% | 29,772.29 |
| Contra Fund | SBI Contra Fund – Regular Plan – Growth | Very High | 38.70% | 16,337.09 |
| Low Duration Fund | SBI Magnum Low Duration Fund – Regular Plan – Growth | moderate | 4.48% | 10,538.55 |
| Corporate Bond Fund | SBI Corporate Bond Fund – Regular Plan – Growth | moderate | 4.24% | 19,188.57 |
| Money Market Fund | SBI Savings Fund – Regular Plan – Growth | moderate | 4.62% | 19,387.50 |
Is SIP Mitra SBI good?
Mitra SIP Plan is good for the investors who want to have regular income from their investments. Mitra SBI MF is a readymade income solution for DIY investors. Even people with low awareness about mutual funds and its working can also invest and take regular payout from Mitra SIP.
Mitra Scheme returns can be better than regular debt oriented investments such as NSC, Life insurance policies, pension plans and other options.
SBI Mutual fund Mitra SIP One Pager
SBI Mutual Fund SIP Calculator
Now you can calculate the future performance with the help of SIP Mitra SBI calculator.
The benefit of SIP calculator for SBI Mutual Fund is quick, easy and reasonably accurate. Now you can easily estimate the SIP amount. If you know the future amount and return you expect from your investment, you can calculate the SIP amount.
For example if you wish to have Rs 1 Cr. in your kitty in 20 years, you need to start a monthly SIP of Rs.10000.
SBI SIP calculator mutual fund
SIP calculator SBI Mutual Fund ( maturity)
Want to estimate, how much you can make with a SBI SIP investment. For this you can visit the link
SBI Return Value Calculator and get the future estimate of your contributions.
You can have a fair idea about how much you need to invest and what you can get at maturity with SBI MF SIP calculator.
Summarise
Mitra SIP SBI is combination of two concepts i.e SIP and SWP. Just start an SIP for 8/10/12/15 years and get a monthly payout via Systematic Withdrawal plan ( SWP ). This is a good initiative by SBI MF for the people who wish to invest for a longer duration, solve a purpose and do not have access to a Financial Advisor.
In nutshell readymade solution for Retirement income generation. Other AMC Such as ICICI Prudential is also offering the same solution with name ICICI Prudential Freedom SIP.
ICICI Prudential Freedom SIP- Worry Free Retirement Solution
