SBI Debt Hybrid Fund is a conservative hybrid fund which was initially launched as a monthly income plan in April 2001 under the name SBI Magnum Monthly Income Plan. Subsequent to SEBI rationalisation, this scheme was reclassified as a conservative hybrid scheme and renamed as SBI Debt Hybrid Fund. This debt fund from SBI Mutual Fund featured an AUM (Assets Under Management) of Rs. 1,251 crore as on January 31, 2019.
Key Statistics of SBI Debt Hybrid Fund Performance*
| Fund Performance | 1 Year | 3 Year | 5 Year |
| Trailing Returns | 0.36% | 6.84% | 9.30% |
| Rolling Returns | 1.13% | 7.23% | 9.27% |
| Beta | 0.425 | 0.379 | 0.407 |
| Jensen’s Alpha | -3.16% | -0.98% | 0.49% |
| Sharpe Ratio | -1.701 | -0.236 | 0.130 |
| Sortino Ratio | -0.468 | -0.026 | 0.191 |
*Data Source – Pulse Labs. All data as on January 31, 2019.
Key Details of SBI Debt Hybrid Fund
The following are some of the key details of the SBI Debt Hybrid Fund as of January 31, 2019:
- Inception Date – April, 2001
- AUM – Rs. 1,251 crore
- Fund Manager – Mr. Rujit Mehta (Equity) and Mr. Dinesh Ahuja (Debt)
- Benchmark – NIFTY 50 Hybrid Composite Debt 15:85 Index (TRI)
- Expense Ratio – 0.98% (Direct)
- Minimum Investment Requirement – Rs. 5,000
SBI Debt Hybrid Fund Performance vs Benchmark*
| Instrument | 1 Year | 3 Year | 5 Year |
| SBI Debt Hybrid Fund | 0.36% | 6.84% | 9.30% |
| Benchmark (NIFTY 50 Hybrid Composite Debt 15:85 Index – TRI) | 5.46% | 8.50% | 9.61% |
*All data as of January 31, 2019.
SBI Debt Hybrid Fund has generated returns of 6.84% and 9.30% over the last 3 year and 5 year periods respectively (as of January, 2019). Although the returns generated by the scheme are in line with the chosen category, they have not been able to outperform the returns generated by its benchmark during the above mentioned tenures. Despite that, the scheme remains a good option in the conservative hybrid mutual funds category which is capable of giving decent returns for a relatively low amount of risk.
Asset Allocation of SBI Debt Hybrid Fund
The following is the Asset Class-Wise Investment Breakup of SBI Debt Hybrid Fund as of January 31, 2019:
| Asset Class | Portfolio Allocation (% of total assets) |
| Equity | 24.69% |
| Sovereign debt instruments | 16.81% |
| AAA rated debt instruments | 31.20% |
| AA+/AA rated debt instruments | 22.88% |
| Below AA rated debt instruments | 12.88% |
| Cash/Cash Equivalent Instruments/Short Term Debt | 7.95% |
*All data as of January 31, 2019.
SBI Debt Hybrid Fund is a relatively aggressive fund as it is mandated to invest between 10%-25% of its assets in equity and equity related instruments and has chosen to stay at the higher end of the bar. The scheme has invested 24.69% of its assets in equities which carry relatively higher market risk and are capable of giving potentially higher returns. A majority of the scheme’s debt portfolio features credit-worthy debt instruments. The scheme has invested around 16.81% of its assets in sovereign debt instruments and another 31.20% in AAA rated debt securities. Both sovereign and AAA rated debt instruments carry the least amount of credit default risk. Another 22.88% of the scheme’s assets are invested in AA+/AA rated debt instruments. The scheme has invested just 12.88% of its assets in AA rated debt securities. The scheme has further hedged its overall portfolio risk by holding around 7.95% of its assets in cash and cash-equivalent instruments. The scheme’s asset allocation across asset classes reflects that it is a low-risk carrying hybrid scheme.
The following is a list of the top sectors that the equity portion of the SBI Debt Hybrid Fund is invested in as of January 31, 2019:
| Investment Sector | % of Assets Allocated |
| Financial Services | 45.52% |
| Energy | 12.59% |
| Services | 6.97% |
| Metals | 6.35% |
| Consumer Goods | 5.22% |
*Data as of January 31, 2019.
SBI Debt Hybrid Fund maintains its aggressive approach in allocation of its assets across sectors as well. This scheme from SBI Mutual Fund has invested more than half of its assets in consumption-driven sectors in its portfolio than defensive sectors. The top 5 sector holdings of the scheme’s equity portion are Financial Services (45.52%), Energy (12.59%), Services (6.97%), Metals (6.35%) and Consumer Goods (5.22%) as of January, 2019. Out of these 5 sectors, 4 are cyclical sectors and just 1 (Services) is defensive.
Top Individual Holdings of SBI Debt Hybrid Fund
The following are the top 5 individual equity investments of the SBI Debt Hybrid Fund:
| Investment Name | Weight in Portfolio (%) |
| HDFC Bank | 1.91% |
| Bajaj Finance | 1.44% |
| Tata Consultancy Services | 1.37% |
| Titan Company | 1.35% |
| Kotak Mahindra Bank | 1.30% |
*Data as of January 31, 2019.
The following are the top 5 issuers of debt securities for the SBI Debt Hybrid Fund:
| Investment Name | Weight in Portfolio (%) |
| State Bank of India (Non Convertible Debentures) | 8.15% |
| Hindalco Industries (Non Convertible Debentures) | 6.35% |
| Reliance Industries (Non Convertible Debentures) | 5.87% |
| ICICI Bank (Non Convertible Debentures) | 3.89% |
| HDFC Credila Financial Services (Non Convertible Debentures) | 3.87% |
*Data as of January 31, 2019.
Investment Facts of SBI Debt Hybrid Fund
- SBI Debt Hybrid Fund is a conservative hybrid fund. It was originally launched as a monthly income plan under the name SBI Magnum Monthly Income Plan in April 2001.
- The scheme has given attractive returns of 6.84% and 9.30% over the last 3 year and 5 year periods respectively (as of January 2019).
- It is a relatively aggressive conservative hybrid fund which has invested 24.69% of its assets in equities. However, the scheme has kept its overall risk low by investing a significant portion of its assets in high quality debt instruments and cash/cash equivalent instruments.
- The scheme follows an aggressive approach in allocating its equity investments across various sectors as well.
- It is a suitable conservative hybrid scheme for investors seeking potentially high returns with relatively low risk.