SBI Mutual Fund has launched its latest fund offer (NFO), the SBI Fixed Maturity Plan (FMP)-Series 92 (91 Days), aimed at investors seeking short-term investment opportunities with limited interest rate risk. Here’s what you need to know about this new offering:
Key Details of the NFO
The close-ended debt scheme will be available for subscription from Wednesday, January 31, to Monday, February 5, 2024. Investors can participate with a minimum subscription amount of X5,000, with subsequent investments in multiples of X thereafter.
Objective and Strategy
The primary objective of the SBI Fixed Maturity Plan (FMP)-Series 92 (91 Days) is to generate regular income and capital growth while mitigating interest rate risk. To achieve this, the fund will strategically invest in a diversified portfolio of debt instruments maturing on or before the scheme’s maturity date.
Risk Profile and Liquidity
SBI Mutual Fund categorizes the risk profile of this NFO as low to medium. However, investors should note that there will be no redemption or repurchase of units allowed before the maturity of the scheme. On maturity, investors can redeem their units.
Listing and Trading
The scheme is proposed to be listed on the BSE within five business days from the date of allotment. This listing will provide investors with the option to trade on the exchange, offering liquidity and an exit route.
Benchmark and Asset Allocation
The benchmark for the scheme is the Crisil Liquid Debt Index. The fund’s assets will be allocated in debt and money market instruments, with indicative allocations ranging up to 100% of total assets.
Fees and Expenses
All expenses related to the NFO, including sales and distribution fees, marketing, advertising, registrar expenses, printing, and stationery, will be borne by the asset management company (AMC). Additionally, the annual scheme recurring expenses include investment management and advisory fees, registrar and transfer agents’ fees, as well as marketing and selling costs.
Investment Considerations
Investors with a short-term investment horizon, a preference for relatively lower interest rate risk, and a tolerance for credit risk may find the SBI Fixed Maturity Plan (FMP)-Series 92 (91 Days) appealing. However, it’s essential to carefully assess your investment objectives and risk tolerance before participating in the NFO.
As with any investment decision, it’s advisable to consult with a financial advisor to determine if the SBI Fixed Maturity Plan (FMP)-Series 92 (91 Days) aligns with your financial goals and risk appetite.
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