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This Medium Duration Debt Fund Is Good For SIP Given 20.17% Returns In 5-Year, Check Portfolio
There is uncertainty in the debt market as interest rates rise. Investors in debt mutual funds and other securities are concerned about their returns as the Reserve Bank of India prepares to raise interest rates to combat inflation in the coming months. The common refrain among debt fund investors is that current returns are muted and lower than expected. In some cases, such as liquid funds, returns are lower than those of bank term deposits. If you are looking for a debt fund this medium duration mutual fund can be a good bet. This fund has given good returns on SIP.
SBI Magnum Medium Duration Fund - Direct Plan-Growth
This is a medium-sized debt fund from SBI Mutual Fund. This is an 18-year-old fund launched on 12 November 2003. This is a medium sized fund of its category. The Asset Under the Management of the fund is Rs 9967.97 crore. The Net Asset Value of the fund declared on 20th May 2022 is Rs 43.2353. It has an expense ratio of 0.68%, whereas its category expense ratio is 58% almost close to the fund's average.
It is an open-ended moderate-high risky mutual fund scheme for investments. The fund has been rated 4-star by the CRISIL. It has given above-average performance among the peer funds. The fund's benchmark is NIFTY Medium Duration Debt Index C-III.
The fund seeks to provide investors with the opportunity to generate attractive returns with a moderate degree of liquidity by investing in debt and money market instruments with a Macaulay duration of 3 to 4 years.
Investment in this fund can be started with a minimum required amount of Rs 5,000 and Rs 1,000 for additional investments. SIP in this fund starts with a minimum of Rs 500. There is no lock-in period in the fund. It charges 1.5% for redemption within 365 days for units in excess of 8% of the investments.
Absolute & Annualised Returns
Lump-Sum Investment Returns
Since its launch, it has delivered 9.27% average annual returns.
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 2.95% | 2.95% |
| 2 Year | 12.21% | 5.93% |
| 3 Year | 26.48% | 8.14% |
| 5 Year | 46.52% | 7.93% |
| Since Inception | 128.25% | 9.27% |
SIP Returns
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 0.51% | 0.94% |
| 2 Year | 3.63% | 3.48% |
| 3 Year | 8.93% | 5.64% |
| 5 Year | 20.17% | 7.28% |
Portfolio
The fund has 96.25% investment in Debt of which 27.04% in Government securities, and 66.2% in funds invested in very low-risk securities. The fund's credit profile is low, indicating that it has lent to borrowers of average quality. The fund's top holdings are in the Government of India, State Bank of India (SBI), Mahindra Rural Housing Finance Ltd., Flometallic India Pvt. Ltd., and Indian Bank.
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
