SBI Mutual Fund has launched a New Fund Offer (NFO) for SBI Corporate Bond Fund which aims to provide the investors an opportunity to predominantly invest in corporate bonds rated AA+ and above to generate additional spread on part of their debt investments from high quality corporate debt securities. The NFO period begins from January 16, 2019 and will end on January 29, 2019. The open-ended debt scheme intends to maintain moderate liquidity in the portfolio through investment in money market securities.
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SBI Corporate Bond Fund will invest 80%-100% of its assets in Corporate Bonds rated AA+ and above and around 0%-20% in other debt instruments, Central and State Government (s) dated securities and money market instruments. The scheme can also invest 0%-10% in units of REITs and InVITs.
The scheme will be benchmarked against NIFTY Corporate Bond Index. The index measures the performance of AAA rated corporate bonds across 6 duration buckets (Macaulay Duration).
| Index Name | 1 Year Return | 3 Year Return |
| NIFTY Corporate Bond Index* | 6.14% | 7.33% |
(Returns data as on December 31, 2018).*We have taken NIFTY AAA Short Duration Bond Index of the NIFTY Corporate Bond Index since corporate bond funds typically invest in securities with an average maturity of 3 years. Data for the Nifty Corporate Bond Index was not available).
The scheme will be managed by Mr. Rajeev Radhakrishnan. Other funds being currently managed by him include SBI Short Term Debt Fund and SBI Magnum Ultra Short Term Debt Fund. These funds have given a return of 6.85% and 8.19% respectively over a period of last 1 year. (Returns are for the direct variant of the schemes as on January 15, 2019)
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Key information about the SBI Corporate Bond Fund NFO:
| NFO Period | January 16, 2019 – January 29, 2019 |
| Minimum Application Amount | Rs. 5,000 |
| Exit Load | For exit on or before 6 months from the date of allotment – 1.00%
For exit after 6 months from the date of allotment – Nil |
| Benchmark | NIFTY Corporate Bond Index |
| Fund Manager | Rajeev Radhakrishnan |
Here are 21 of the Best SBI Mutual Funds you can invest in 2020:
| Fund Name | 1 Year Return | 3 Year Returns | 5 Year Returns |
| SBI Banking & Financial Service Fund | 24.92% | 25.63% | – |
| SBI ETF Nifty Bank Fund | 19.17% | 20.69% | – |
| sbi technology opportunities fund | 9.26% | 17.32% | 8.63% |
| sbi consumption opportunities fund | 6.39% | 16.82% | 11.98% |
| SBI Focused Equity Fund | 19.44% | 16.16% | 12.90% |
| SBI Small Cap Fund | 2.28% | 16.04% | 22.27% |
| SBI Magnum Equity ESG Fund | 15.96% | 13.49% | 10.27% |
| SBI Equity Hybrid Fund | 15.62% | 12.90% | 11.42% |
| SBI Large & Midcap Fund | 9.07% | 12.64% | 10.19% |
| SBI BlueChip Fund | 12.68% | 12.51% | 10.52% |
| SBI Magnum Multi-Cap Fund | 9.23% | 12.15% | 14.65% |
| SBI Gold Fund | 24.58% | 11.91% | 7.39% |
| SBI Dynamic Asset Allocation Fund | 7.64% | 11.57% | – |
| SBI Magnum Children’s Benefit Plan | 3.70% | 11.39% | 12.20% |
| SBI Magnum Global Fund | 10.42% | 10.37% | 9.33% |
| SBI Magnum Taxgain Fund | 5.98% | 9.84% | 6.98% |
| SBI Magnum Constant Maturity Fund | 13.03% | 9.73% | 10.40% |
| SBI Infrastructure Fund | 14.00% | 9.44% | 8.33% |
| SBI Equity Savings Fund | 11.07% | 9.09% | – |
| SBI Dynamic Bond Fund | 12.51% | 9.05% | 9.81% |
| SBI Magnum Medium Duration Fund | 11.81% | 8.99% | 9.93% |
(Data as on Jan 5, 2020; Source: Value Research)