Publish Date:
SBI Mutual Fund has launched a close ended debt scheme – SBI Fixed Maturity Plan - Series 55 (1849 Days).
The scheme endeavours to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of debt instruments maturing on or before the maturity of the scheme. There is no assurance or guarantee that the scheme’s objective will be achieved.
It is a Fixed Maturity Plan that will mature in 1849 days from the date of allotment.
For the purpose of achieving the investment objective, the scheme will invest in a portfolio of Debt and Money Market securities, maturing on or before maturity of the scheme.
Under normal circumstances the scheme will invest 70% to 100% of its assets in Debt Instruments; whereas upto 30% of its assets can be invested in Money Market Securities.
As mentioned in the Scheme Information Document (SID), SBI Fixed Maturity Plan - Series 55 (1849 Days) is a Close-ended Debt Scheme and the objective is to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of mix of fixed income securities maturing on or before the maturity of the scheme. Investments under the Scheme would be made only in securities which mature on or before the date of the maturity of the Scheme.
SBI Fixed Maturity Plan - Series 55 (1849 Days) 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. Companies in the investment universe are initially screened on the basis of Management quality, Business and Industry analysis & Feedback from creditors/ Rating agencies. Companies which meet the initial screening norms are then evaluated on the financial norms for consideration in the investment.
SBI Fixed Maturity Plan - Series 55 (1849 Days) would make investment in securities in the investment universe based on market spreads and liquidity, so as to match the investment horizon with the scheme maturity. Investment in sovereign papers would be based on interest rate expectations arising out of macroeconomic analysis. This includes analysis of inflation data and trends in macro variables such as credit growth, liquidity, money supply growth, fiscal numbers and the global interest environment.
The NFO opens for subscription on November 16, 2021, and closes on November 22, 2021.
SBI Fixed Maturity Plan - Series 55 (1849 Days) performance will be benchmarked against CRISIL Medium to Long Term Debt index.
The fund will be managed by Ms. Ranjana Gupta.
The New Fund Offer price is Rs 10 per unit and the minimum application amount for initial purchase is Rs 5,000 and in multiples of Re 1 thereafter during the NFO period.
The scheme offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum capital withdrawal Plan (Payout and Transfer Facility).
Investors will not be able to redeem their units during the tenure of the Scheme and there will be redemption by the fund on the maturity of the Scheme. However, the units held in dematerialized form can be traded on the Stock Exchange.
The scheme is proposed to be listed on the BSE Limited (BSE) within 5 business days from the date of allotment. Investors can trade on the exchange and Investors wishing to exit may do so, through BSE or any other stock exchange where the scheme will be listed.