NFO analysis: SBI Fixed Maturity Plan – Series 58
SBI Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented, hybrid, solution-oriented, and so on. The total assets under management of SBI AMC stand at Rs 5,78,162.69 crore as of September 2021, which is launching the next series of fixed maturity plans (FMP). This is a closed-ended fund that seeks to offer capital appreciation and regular income.
Subscription date: The NFO was launched on December 30, 2021, and will close on January 4, 2022.
The objective of the scheme: The scheme endeavours to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising debt instruments maturing on or before the maturity of the scheme.
Benchmark: CRISIL Medium to Long Term Debt Index
Investment Strategies: Investments under the scheme would be made only in securities, which mature on or before the maturity date of the scheme. It has the flexibility to invest in the entire range of debt instruments and would seek to minimise interest rate risk while avoiding credit risks. The issuer selection for credit exposure would be based on financial parameters such as turnover, net worth, gearing, interest coverage ratio, and profitability track record.
Asset allocation:
|
Instruments
|
Minimum (per cent)
|
Maximum (per cent)
|
Risk profile
|
|
Debt
|
70
|
100
|
Low to medium
|
|
Money Market Securities
|
0
|
30
|
Low to medium
|
Fund Manager: Ranjana Gupta
This fund will be suitable for investors for low to medium risk profiles as the fund manager of this scheme would allocate the capital towards debt as well as money market instruments. Investors willing to diversify their portfolios and those who wish to include debt & money market instruments can consider investing in this scheme and offer stability to their portfolio. As this is a new series that the fund is offering; so, investors who seek regular income and capital preservation can invest in this fund. FMP gives the taxation benefit that fixed deposits fail to provide. FMP gets indexation benefit, due to which, tax burden lowers down. That is why FMP is preferred over fixed deposits.