Publish Date:
SBI Mutual Fund has launched a close ended debt scheme – SBI FMP-Series 41(1498).
The investment objective of the scheme is to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market 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 1498 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 instruments.
As mentioned in the Scheme Information Document, Investments under the Scheme would be made only in securities which mature on or before the date of the maturity of the Scheme.
The scheme 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.
The scheme 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 March 22, 2021, and closes on March 24, 2021.
The scheme’s performance will be benchmarked against CRISIL CRISIL Medium Term Debt Index.
The fund will be managed by Mr. Deepak Agrawal.
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.
The scheme offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Payout Facility).
No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Redemption will be allowed on maturity of the scheme.
Each series of the scheme is proposed to be listed on the National Stock Exchange of India Limited (NSE) within 5 business days from the date of allotment. Investors can trade on the exchange and Investors wishing to exit may do so, through NSE or any other stock exchange where the scheme will be listed.