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SBI Fixed Maturity Plan (FMP) Fund Reviews

SBI Mutual Fund (SBI MF) to launch a new NFO in the debt fund category: SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days).

SBI Mutual Fund is launching a new debt/ money fund, SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days). The scheme will be a close ended debt scheme. The fund will invest in debt/ money market instruments/ government securities.

The New Fund Offer (NFO) period for the SBI Fixed maturity Plan (FMP) – Series 50 (1843 days) is from September 02, 2021 to September 06, 2021. Redemption/ repurchase of units shall not be allowed before maturity of the scheme. Only upon maturity redemption of the scheme is permissible. Each series of the scheme may be listed on the NSE Limited (NSE) within 5 business days from the date of allotment. However, the scheme doesn’t assure or guarantee that the primary objective of the fund will be realised.

Learn the Difference between: Open end and Closed end funds

Objective

The scheme aims to provide regular income and capital growth over its tenure with limited interest rate risk to the investors. The scheme will make investments in a portfolio comprising debt instruments such as Government Securities, PSU & Corporate Bonds, and Money Market Instruments maturing on or before the maturity of the scheme.

SBI Fixed Maturity Plan (FMP) Series 50 Fund Details

SBI Fixed Maturity Plan (FMP) – Series 50 (1843 Days)Details
NFO Opening DateSeptember 02nd, 2021
NFO Closing DateSeptember 06th, 2021
Re-open DateThe scheme is close ended, units will not be offered ongoing basis
Type of FundClose ended debt scheme
Fund ManagerMs. Ranjana Gupta
Minimum Investment AmountINR 5,000 and in multiples of INR 1 thereafter
Exit LoadNot ApplicableSince the Scheme will be listed on Stock Exchange any Exit Load is not applicable
SuitabilityModerate Risk
BenchmarkCRISIL Medium to LongTerm Debt index
Plans and OptionsRegular Plan & Direct Plan

NOTE: 

The additional investment amount should be a multiple of INR 1/- after INR 5,000

There will be no continuous offer in this scheme.

Switch In– Investors can switch into the Scheme during the New Fund Offer Period. If they are invested in existing Schemes of SBI Mutual Fund and they have completed the Lock-in Period, they can switch into the scheme.

Switch Out– Investors can switch out from the scheme only at the time of its maturity. However, the Scheme provides a switch out facility, under which investors will have the option of submitting a switch request at the time of investment. A request can be raised for switching the entire corpus on maturity in any open-ended scheme of the SBIMF.

If an investor has opted for a switch out from the scheme at the time of investment and wishes to change the switch out option a written request must be submitted. The request should be submitted at least 30 days in advance before the maturity date.

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Who Can Invest?

SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days) best suits investors who aim at benefitting from regular income and capital growth. The fund invests its assets across debt instruments, Government Securities, and money market instruments. The scheme will be subject to the different levels of risk associated with the different types of securities. Hence investors with a moderate risk-taking capability can consider this fund for long-duration investments. Moreover, investors looking for exposure in the debt instruments can invest in this fund. The fund is suitable for investors interested in staying invested for a minimum of 5+ years.

Fund Manager

Ms. Ranjana Gupta

Ms. Ranjana Gupta has over 21 years of experience in the capital market. She had joined SBIFMPL in 2008 as a Fixed Income Dealer. Earlier she was heading the broking activities at Twenty-first Century Shares and Securities Ltd. from May 1995 to February 2008. Before that, she has also worked with OTCEI (Over the Counter Exchange of India) as a dealer. Ms. Gupta has completed her graduation in Commerce from Mumbai University. At SBIFMPL, Ms. Gupta is also managing SBI Debt Fund Series since October 5, 2016. Additionally, she also handles SBI Fixed Maturity Plan (FMP) series. She is also managing SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days) since its inception.

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SBI Fixed Maturity Plan (FMP) Fund Asset Allocation

SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days) manages the asset allocation to debt instruments, Government Securities, and money market instruments (such as term/notice money market, repos, and reverse repos). Minimum allocation of 70% is done to debt instruments and a maximum of 30% in money market securities. The fund aims to benefit investors by providing them exposure to debt schemes and generate regular returns in the long term. Following is the indicative asset allocation of the SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days).

InstrumentsIndicative Allocation(% of total assets)Risk Profile
MinimumMaximumHigh/ Medium/ Low
Debt*70%100%Low to Medium 
Money Market Securities0%30%Low to Medium

* Exposure to domestic securitized debt may be to the extent of 40% of the net assets

The fund proposes to construct the scheme’s portfolio in accordance with the investment restriction specified under the Regulations. It will help in mitigating certain risks relating to investments in the securities market. The asset allocation will be done in the debt instruments such as Government Securities, PSU & Corporate Bonds, and Money Market Instruments. The strategy shows how the fund’s assets will be invested to provide regular income and capital growth. The debt investments will depend on several factors such as government borrowing, inflation, economic performance, etc. The value of investments will change in proportion to the interest rate fluctuations. However, if the investments are held till the maturity of the investments, the value of the investments will not be subjected to this risk.

Concluding Remarks

SBI Fixed Maturity Plan (FMP) – Series 50 (1843 days) is a close-ended debt scheme that offers capital growth over the tenor of the scheme. The fund generates returns by limiting interest rate risk for the investors through investments in a portfolio comprising debt instruments. SIP, SWP, and STP facilities are not available for investors.

Investors must understand that a minimum investment horizon of 1843 days (5 years 4 days) is required to generate maximum benefits. Also, investors with moderate risk-taking capacity may consider this fund for appreciating capital in the long term.  It is advisable to invest in the scheme under the guidance of financial advisors. Since the fund doesn’t guarantee returns, it is recommended to regularly monitor the investment in this fund to ensure its results align with investors’ financial goals.