SBI Mutual Fund has launched two fixed maturity plans (FMPs) of 91 and 1,157 days. Both the plans are closed-end debt schemes.
The new fund offer (NFO) launch and closure date of SBI Fixed Maturity Plan (FMP)-Series 82 (91 Days) is March 23, 2023. The NFO of SBI Fixed Maturity Plan (FMP)-Series 81 (1157 Days) opened on March 21, 2023 and will close on March 28, 2023.
The minimum investment in both schemes is Rs 5,000 and in multiples of Re. 1 thereafter.
Both the schemes will not have any entry or exit load. There won’t be any option of continuous offer as well, as the schemes will not be offered on a continuous basis. Both schemes will have direct and regular plans with growth and dividend options.
SBI Mutual Fund announced in a scheme information document that both schemes will attempt 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.
The SBI Fixed Maturity Plan (FMP)–Series 81 (1157 Days) will follow the Crisil Medium Term Debt index as its benchmark, while the SBI Fixed Maturity Plan (FMP)–Series 82 (91 Days) will follow the Crisil Liquid Fund Index.
According to SBI Mutual Fund, the SBI Fixed Maturity Plan (FMP) –Series 81 (1157 Days) product is suitable for investors who are seeking income with capital growth over the tenure of the scheme, and want to invest in debt, money market and/or government securities.
The asset allocation will be 70-100 per cent in debt and maximum of 30 per cent in money market instruments. The closed-end debt scheme offers relatively high interest rate risk and relatively low credit risk, SBI Mutual Fund further said.
SBI Fixed Maturity Plan (FMP)–Series 82 (91 Days), on the other hand, is a closed-end debt scheme that offers relatively low interest rate risk and relatively high credit risk, and will invest up to 100 per cent in debt and money market instruments.
Both schemes offer options to switch out only at the time of maturity, i.e., 91 days and 1,157 days, respectively.
