SBI Fixed Maturity Plan (FMP) close-ended NFO: Key things to know before you subscribe

2 Jan 2023 , 12:21 PM

SBI Mutual Fund has launched a new fund offer (NFO) under its “Debt category”, named as SBI Fixed Maturity Plan (FMP)- Series 75 (366 days). The close-ended debt fund invests in debt and money market instruments.

Investment strategy: The scheme aims to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of debt instruments maturing on or before the maturity of the scheme.

Asset allocation: Axis Long Duration Fund will hold an allocation of 0% to 100% of its assets in Debt Instruments & Money Market Instruments. Debt instruments with relatively low interest rate risk and relatively high credit risk.

Who should invest?

Investors with moderate risk appetite and need higher returns than a regular FD but can accept the frequent NAV fluctuations should invest in the scheme. Compared to equity funds, the fund is low risk-low return investment. However, due to the restricted liquidity, investors who are ready to park their money for the NFO tenure of 366 days should invest in this scheme.

Risk associated: Moderate level of risk.

Benchmark: Crisil Short Term Bond Fund Index

Fund Managers: Ms Ranjana Gupta.

The NFO is available for subscription from December 30, 2022 to January 09, 2022. The schemes will list on NSE within 5 business days from the date of allotment. Investors can trade on the exchange and investors wishing to exit may do so, through NSE or any other stock exchange where the scheme will be listed.

It offers Regular Plan and Direct Plan. Click here to invest in SBI Fixed Maturity Plan (FMP).