Sbi Magnum Medium Duration Fund

Over the past year, the SBI Magnum Medium Duration Fund has delivered a return of 7.9%. Its performance over the last three years stands at 5.6%, while over the past five years it has generated a return of 7.6%. Looking back over a decade, the fund has achieved an annualized return of 8.9%. Since its inception, it has maintained an average return of 7.8%. In terms of its six-month Compounded Annual Growth Rate (CAGR), it stands at 3.5%.

Scheme Information

To provide investors an opportunity to generate attractive returns with moderate degree of liquidity through investments in debt and money market instruments such that the Macaulay duration of the portfolio is between 3 years – 4 years. However,there is no guarantee or assurance that the investment objective of the scheme will be achieved. The scheme doesn’t assure or guarantee any returns.

The expense ratio of the SBI Magnum Medium Duration Fund is 1.22%. It was launched on November 12, 2003, and currently has an asset under management (AUM) of INR 6680.136 crores. The fund does not have a lock-in period and its benchmark is the Nifty Medium Duration Debt Index TR INR. The minimum investment for Systematic Investment Plan (SIP) is INR 1000, while for lump sum investments it is INR 5000.

In terms of risk measures, the standard deviation over a three-year period is 1.5% and over a five-year period it is 2.1%. The beta value indicates that this fund has no correlation with market movements over both three- and five-year periods. The Sharpe ratio, which measures risk-adjusted returns, stands at -0.126 for the three-year period and at 1.107 for the five-year period.

Furthermore, the yield to maturity (YTM) of this fund is recorded at 8.07%.

What does the term “medium to long duration fund” mean?

The SBI Magnum Medium Duration Fund is a type of mutual fund that focuses on investing in debt instruments for a medium to long term period. It is an open-ended scheme, which means investors can buy and sell units at any time.

You might be interested:  SBI Equity Hybrid Fund Regular Growth NAV Today: A Diversified Investment Option for Long-Term Gains

By choosing debt instruments with this specific duration range, the SBI Magnum Medium Duration Fund aims to strike a balance between generating income from interest payments and managing potential risks associated with changes in interest rates or market conditions over time.

Overall, this fund provides investors with an opportunity to invest their money in medium-term bonds that offer relatively higher returns compared to short-term investments while also considering risk factors associated with longer-term investments.

Returns Calculator Comparison

The SBI Magnum Medium Duration Fund (Growth) has shown a return of 70% with a total corpus of INR 8,80,709 and gains amounting to INR 1,48,097. The compound annual growth rate (CAGR) for this fund is 7.6%. Comparatively, other investment options such as EPF, property, PPF, bank FDs, gold and savings bank accounts have also generated returns ranging from 5% to 8.50%.

Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.

NAV of SBI Magnum Low Duration Fund growth: What is it?

SBI Magnum Low Duration Fund Direct Plan-Growth is a mutual fund that focuses on generating income through investments in low duration debt securities. It has a significant Asset Under Management (AUM) of ₹10,271.23 Crores, indicating the trust and confidence investors have placed in this fund.

The latest Net Asset Value (NAV) declared for SBI Magnum Low Duration Fund Direct Plan-Growth stands at ₹3263.762 as of [date]. NAV represents the value per unit of the mutual fund scheme and is calculated by dividing the total assets by the number of units outstanding. This figure helps investors understand how their investment is performing over time.

Investing in low duration funds like SBI Magnum can be beneficial for individuals who seek stable returns with relatively lower risk compared to other types of mutual funds. These funds primarily invest in fixed-income instruments such as government bonds, corporate debentures, and money market instruments with shorter maturities.

For example, if an individual wants to park their surplus cash or savings temporarily while earning some interest without taking excessive risks, they can consider investing in low duration funds like SBI Magnum Low Duration Fund Direct Plan-Growth. The stability provided by these funds makes them suitable for short-term financial goals or emergency reserves where liquidity is crucial.

You might be interested:  Certificate of payment issued by SBI Life Insurance

Asset allocation and Holdings

SBI Funds Management Ltd, established on 7th February 1992, is responsible for managing assets valued at INR 624,670 crores. Their range of mutual fund schemes comprises 90 equity funds, 230 debt funds, and 41 hybrid funds.

What does SBI liquid fund mean?

The SBI Magnum Medium Duration Fund primarily invests in debt securities, with 98.01% of its investments allocated to this asset class. Within the debt category, around 24.42% is invested in government securities, while 73.59% is allocated to low-risk securities. This fund is suitable for individuals who are seeking a short-term investment option as an alternative to traditional bank accounts or fixed deposits.

In simple terms, the SBI Magnum Medium Duration Fund allows investors to put their money into various types of loans and bonds issued by governments and other entities. These investments are considered relatively safe and have the potential to generate stable returns over a medium duration period.

Investors who want a temporary place to park their funds can consider this fund instead of keeping them idle in a regular savings account or fixed deposit where returns may be lower. By investing in this fund, individuals have the opportunity to earn potentially higher interest rates on their investments while maintaining a certain level of safety.

– The SBI Magnum Medium Duration Fund primarily invests in debt securities.

– It offers investors an alternative short-term investment option.

– Suitable for those looking for better returns than traditional bank accounts/deposits while maintaining some level of safety.

Who ought to consider investing in medium duration funds?

For individuals with shorter financial goals, such as those looking to save for a vacation or purchase a car within the next year or two, opting for short-term investment options might be more suitable. These could include fixed deposits or liquid funds which offer higher liquidity and lower risk compared to medium duration funds.

What are the benefits of medium-term funds?

1. Low-risk option: SBI Magnum Medium Duration Fund offers a lower level of risk compared to pure equity schemes and equity-oriented mutual funds. This makes it an ideal choice for investors looking to diversify their portfolio and protect against market volatility.

You might be interested:  Download SBI Life Premium Receipt

2. Stable returns: The fund aims to provide stable returns over a medium-term investment horizon. It invests in a mix of debt instruments with varying maturities, which helps in generating consistent income for investors.

3. Liquidity: Investors can easily buy or sell units of the SBI Magnum Medium Duration Fund as per their convenience, making it a liquid investment option.

4. Tax efficiency: Investing in this fund may offer tax benefits under certain circumstances, such as indexation benefit on long-term capital gains after three years.

5. Professional management: The fund is managed by experienced professionals who have expertise in analyzing fixed income securities and managing interest rate risks effectively.

6. Diversification benefits: By investing in a diversified portfolio of debt instruments across different sectors and issuers, the fund reduces concentration risk and provides better stability to the overall portfolio.

7. Suitable for conservative investors: Due to its relatively lower risk profile, SBI Magnum Medium Duration Fund is well-suited for conservative investors seeking steady income generation while preserving capital.

8. Regular income stream: The fund focuses on generating regular income through coupon payments from its investments, making it suitable for individuals looking for periodic cash flows or those planning retirement or other financial goals requiring regular payouts.

9.Transparency and regulatory oversight : Being regulated by SEBI (Securities Exchange Board of India), the SBI Magnum Medium Duration Fund ensures transparency in operations and follows strict guidelines set by the regulator to safeguard investor interests.

10.Convenience through SIPs : Investors can opt for Systematic Investment Plans (SIPs) offered by this scheme that allow them to invest small amounts at regular intervals, promoting disciplined investing and rupee cost averaging.

Which SBI Magnum fund is the oldest?

– Established on 1st January 1991

– Aims for long-term capital growth

– Active investment management approach

– Diversified portfolio strategy

– Adheres to ESG criteria (Environmental, Social, and Governance)

– Seeks sustainable investment opportunities

– Focuses on companies with strong ESG practices

– Offers potential for both financial returns and positive impact

– Suitable for investors looking for socially responsible investing options