SBI Mutual Fund on Monday launched SBI Long Duration Fund. The new fund offer (NFO) will remain open for investors till December 20, 2022.
It is an open-ended debt scheme investing in debt and money market instruments such that the Macaulay duration of the scheme portfolio is greater than seven years. The SBI Long Duration Fund will have a relatively high-interest rate risk and moderate credit risk.
The scheme seeks to invest in government securities which can be an ideal solution for investors looking to invest in a reasonable credit quality portfolio and have a longer investment horizon.
Investors may benefit by locking in at prevailing yields by investing in this scheme where the duration is aligned with their investment goals, as per SBI Mutual Fund.
The main objective of the scheme is to provide attractive risk-adjusted returns to its investors through active management of credit risk and interest rate risk in its portfolio.
However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved, according to SBI Mutual Fund.
Here are the two long duration funds that demonstrated good performance since inception.
|Name of the schemes||Returns since launch (%)|
|ICICI Prudential Long Term Bond Fund||8.09|
|Nippon India Nivesh Lakshya Fund||8.97|
Rajeev Radhakrishnan, CIO – Fixed Income, will be the fund manager of the debt portion of the scheme with Mohit Jain the dedicated fund manager for overseas securities. The benchmark of the scheme is CRISIL Long Duration Fund AIII Index.
The minimum application amount required for SBI Long Duration Fund is Rs. 5,000 and in multiples of Rs. 1 thereafter.