SBI Magnum Medium Duration Fund Direct
SBI Magnum Medium Duration Fund Direct direct returns were 6.67% over the past year. Since its inception, it has averaged 9.98% each year.
The fund has an expense ratio of 0.68% and you can start investing in it with a minimum of Rs 1000. The main holdings of the fund are Reserve Bank of India, State Bank of India, Mahindra Rural Housing Finance Ltd. , Tata Realty and Infrastructure Ltd., Flometallic India Pvt. Ltd. The assets under management of the SBI Magnum medium duration fund are Rs 9,412 Crs.
ValueResearch Online and Morningstar gave the fund a 5-star rating. The most important advantage of investing in the SBI Magnum Medium Duration Fund is that you will have exposure to a portfolio that includes debt securities and money market securities. This fund is suitable for investors with an investment horizon of three to four years. However, this cannot be compared to the returns of an equity fund during a market peak.
SBI Banking and PSU funds
As of July 17, 2021, the fund had Rs 14,078 crore in assets under management (AUM) and a net asset value of Rs 2,597.98. The fund is rated 5 stars by Morningstar. The 1-year returns of SBI Banking and PSU Fund Direct-Growth are 4.16%. It has averaged 8.77% per year since its inception. The fund’s main holdings are in Oil & Natural Gas Corpn. Ltd., State Bank of India, National Housing Bank, Rural Electrification Corpn. Ltd., Axis Bank Ltd.
Funds from banks and public sector enterprises (PSUs) invest primarily in bonds issued by banks, PSUs and public financial institutions. They are suitable for an investment horizon of two to three years, as well as a fixed income proportion in a longer-term portfolio. You can expect higher returns than you would get from a fixed bank deposit. The fund’s expense ratio is 0.34%, which is comparable to most other Union of Banking and Public Sector funds.
SBI Magnum Income Fund
Medium and long term debt funds invest primarily in bonds as they attempt to generate higher returns than similar term bank deposits. These funds are unlikely to lose money during the specified time period, but they may experience some volatility in response to changes in interest rates. The latest one-year growth returns for the SBI Magnum Income Direct plan were 5.76%. It has had an average annual return of 8.85% since its inception. The main holdings of the fund are Reserve Bank of India, Indian Bank, GOI, Embassy Office Parks REIT, Tata Realty and Infrastructure Ltd. The SBI Magnum Income Fund direct plan has an expense ratio of 0.8%. ValueResearch Online and Morningstar gave the fund a 5-star rating.
SBI Savings Fund
It has an AUM of Rs 22,380.83 crore, and the most recent NAV reported as of July 17, 2021 is 34,591 crore. The fund received a 4-star rating from ValueResearch and a 5-star rating from Morningstar. . The fund charges a cost ratio of 0.75%, which is more than most other money market funds. GOI, Reserve Bank of India, Axis Bank Ltd., National Bank For Agriculture & Rural Development and RBL Bank Ltd. are among the main holdings of the fund. It has had an average annual return of 7.25% since its inception.
Money market debt funds invest in short-term bonds with a maturity of one year. They are designed to generate slightly higher returns than a bank account or short-term fixed deposit. These funds have a minimal chance of losing money for any length of time specified, but they do not guarantee returns or protection of capital.
SBI Credit Risk Fund
Credit risk funds invest primarily in bonds rated AA or less by rating agencies. The lower rating suggests that there is a greater chance that these bonds will not return investors’ money. As a result, these funds are the riskiest of the debt fund categories. However, they offset the increased risk with a higher potential return, as these bonds pay higher interest rates than higher-rated bonds. The fund received a 4-star rating from ValueResearch and a 5-star rating from Morningstar.
SBI Credit Risk Fund-Growth is a mid-sized fund in its category, with assets under management (AUM) of 3,473 crore. The fund’s expense ratio is 1.54%, which is higher than the expense ratios charged by most other credit risk funds.
The SBI Credit Risk Fund’s one-year growth returns are 6.98%. It has had an average annual return of 7.64% since its inception. GOI, IndInfravit Trust, Tata International Ltd., Flometallic India Pvt. Ltd. and Godrej Industries Ltd. are among the main holdings of the fund.
Who should invest in debt funds?
Loan funds are great for investors who want regular income but don’t want to take risks. Debt funds are less risky than equity funds because they are less volatile. Debt mutual funds may be a better alternative if you’ve saved in traditional fixed income products like term deposits and are looking for consistent returns with low volatility. They help you achieve your financial goals in a more tax-efficient way and therefore achieve better returns.
Debt funds are similar to other mutual funds in that they invest in stocks and bonds. They do, however, outperform mutual funds in terms of safety. When the market collapses, for example, the NAVs of your equity funds fall sharply, while the NAVs of your debt funds fall less sharply. However, debt funds can only provide moderate returns, while high risk equity funds can provide significant returns over a longer time horizon.
The difficulty with offering mutual funds is that no mutual fund system can maintain a 5 star rating for an extended period of time. Therefore, a mutual fund strategy that looks profitable today may not be profitable tomorrow. Please note that the Nifty is around 16,000 points, a new high, indicating that the markets are not only expensive, but extremely overvalued.
Warning
Market risks apply to investments in mutual funds; read all plan documents carefully. Plan NAVs may rise or fall in response to variables and pressures affecting the securities market, such as changes in interest rates. The opinions and investment information offered by the authors and employees of Greynium Information Technologies should not be construed as investment advice to buy or sell stocks, gold, currencies or other products of based. Investors should not make any trading or investment decisions solely on the basis of the information presented on GoodReturns.in.
