SBI Magnum Ultra Short Duration Fund (Growth)

SBI Magnum Ultra Short Duration Fund-Growth is an open-ended short duration debt mutual fund scheme that invests in instruments such that the Macaulay duration of Portfolio is between 3 months and 6 months. It predominantly invests in high-quality debt and money market instruments. The scheme aims to generate a regular income on investment at par with inflation with high degree of liquidity. Earlier, the fund was known as SBI Magnum Insta Cash Reg Cash. The fund is managed by SBI Funds Management Private Limited. 

SBI Magnum Ultra Short Duration Fund-Growth Investment Objective

The investment objective of the Scheme is to provide investors with an opportunity to generate regular income with high degree of liquidity through investments in a portfolio comprising predominantly of debt and money market instruments. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved. The Scheme seeks to provide investors with an opportunity to generate regular income with high degree of liquidity. The fund invests in an entire range of debt and money market securities in line with the investment objective to provide attractive risk-adjusted returns. It achieves its objective through active management of credit risk and interest rate risk in its portfolio.

SBI Magnum Ultra Short Duration Fund-Growth Scheme Details

On 21 May 1999, SBI Mutual Fund had launched the scheme. The scheme has been in existence for the past 22 years. Since its inception, the continues to provide regular income on investment at par with inflation.

NAV and Returns – As of 22nd June 2021, the NAV of the fund is Rs 4,712.59. The fund’s risk-o-meter is low to moderate risk. Hence, the investor investing in the fund must recognize that their principal investment is at a low to moderate risk. The fund has delivered a return on investment of 7.30% since its inception

Minimum Investment – The fund has a minimum SIP investment requirement of Rs 1000 and a minimum lump sum investment of Rs 5000

Expense Ratio and Exit Load – The funds charge an expense ratio of 0.49% of the NAV. Here, the expense ratio is close to the expense ratio charged by other AMCs for funds under a similar category. There is no exit load on the redemption of the any number units of the fund.

Fund Manager – Currently, Mr. Rajeev Radhakrishnan is managing the fund. Mr. Rajeev has been managing the fund since May 2010. He possesses an overall experience of 17 years in fund management and research. He heads the Fixed Income desk at the SBI Mutual Fund.
Other Details- No lock-in period for the scheme, you can redeem any amount of investment anytime. The AUM of SBI Magnum Ultra Short Duration Fund as of 22nd June 2021 is Rs 12,865 cr. The fund benchmarks to NIFTY Ultra Short Duration Debt TR INR.

SBI Magnum Ultra Short Duration  Fund-Growth Top Stock Holdings

The SBI Magnum Ultra Short Duration Fund-Growth has invested its assets majorly in the debt instruments of the following companies:

Asset Allocation of SBI Magnum Ultra Short Duration  Fund-Growth

The SBI Magnum Ultra Short Duration  Fund-Growth has invested in the following debt instruments:

SBI Magnum Ultra Short Duration  Fund-Growth Review

Scripbox recommends the SBI Magnum Ultra Short Duration Fund-Growth for investment within ultra short mutual funds. Ultra short duration funds provide relative safety of capital amount invested. It also provides growth of principal at par with inflation over the investment duration. 

1. These funds are suitable for investors who seek regular income with relative stability and high degree of liquidity. It is suitable for an investment duration of 1-5 years or longer.
2. The fund has an extended history of 22 years for analysis. Moreover, the track record is excellent.
3. With an AUM or relative size of Rs 12,865 cr, the relative size of the fund is large in comparison to other similar funds in the ultra short duration fund category.
4. The scheme has performed well consistently over a period of time outperforming its benchmark.
5. The impact of interest rate changes on fund value is quite low in comparison to other similar funds. 
6. The fund has a high credit quality compared to other ultra short duration debt funds in the same category. This indicates that it has lent to borrowers whose credit quality is good. With better borrowers, it ensures a low default risk or credit risk. 

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The algorithm scores financial products on multiple parameters, giving relevant weights to each of the listed parameters, such as:

• Track record of the product – how long has it been around?
• Assets under management – how big is it – for example, the size of a mutual fund
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• The risk associated with the product – what risks impact the product?
• Quality of underlying assets – we assess how risky the underlying assets are – for example, by considering bond ratings in the case of debt funds

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