SBI Mutual Fund announced the launch of the SBI Fixed Maturity Plan, there is no guarantee or assurance that the investment objective of the scheme will be achieved. The scheme opened for public subscription on December 26, 2023, and will close on December 28, 2023.
What kind of mutual fund scheme is this?
This is a close-ended debt scheme with a relatively low interest rate risk and relatively high credit risk. This product is suitable for investors seeking
- Income with capital growth over the tenor of the scheme
- Investment in debt/money market instruments/Government securities
What is the main objective of investing in this fund?
The objective of the scheme is to offer investors a consistent income and potential capital growth while minimizing exposure to interest rate risk. This is achieved by investing in a portfolio of debt instruments that mature on or before the scheme’s maturity date. It’s important to note that there is no guarantee of achieving the investment objective of the scheme.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments |
Indicative allocations (% of total assets) |
Risk Profile | |
|
Minimum |
Maximum |
||
|
Debt & Money Market Instruments |
Up to 100% |
Low to Medium |
Debt & Money Market Instruments |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such fixed maturity plans in the past, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular kind of scheme. These include:
|
Mutual Fund House |
Name of the fund |
| Kotak Mahindra Mutual Fund |
Kotak FMP Series 325 – (90D) |
| Kotak FMP Series 323 – (90D) | |
| Source: AMFI (As of December 26, 2023) | |
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Crisil Liquid Debt Index.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.
Who will manage this scheme?
Ranjana Gupta is the designated fund manager of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Low to Moderate Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to low to moderate risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
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Published: 26 Dec 2023, 02:58 PM IST