November 5, 2022
mayank
SBI Floating Rate Debt Fund
NAV Growth: Rs 10.8878
NAV IDCW Quarterly: Rs 10.8879
NAV IDCW Monthly: Rs 10.8872
Suitable For Which Investors?
“This is a fund that invests mainly in bonds whose rate of interest keeps changing with the prevailing interest rates in the economy. Given their investment mandate, such funds are usually less volatile in response to changing interest rates.
They can be a viable option for the fixed-income allocation in your portfolio. However, we believe that retail investors can avoid these funds altogether. There are far too many kinds of debt funds with a highly nuanced classification based on the type or duration of bonds they can invest in. We believe that so many fund categories add to complexity which is easily avoidable. Retail investors can simply invest in Liquid funds for an investment horizon of up to one year and Short Duration funds for the fixed income allocation (which should be 100 per cent for an investment horizon of up to three years) in their longer-term portfolios.
If you do decide to invest in them, remember that they are meant to deliver steady, but low to moderate returns and are not suitable to build wealth in the long run.”
Fund’s Investment Strategy:
The scheme seeks to generate regular income through investment in a portfolio comprising substantially of floating rate debt instruments. The scheme may invest a portion of its net assets in fixed rate debt securities swapped for floating rate returns and money market instruments.
Fund Manager:
1) Rajeev Radhakrishnan
Education: Mr. Radhakrishnan is B.E (Production), MMS (Finance) and CFA.
Experience: Prior to joining SBI AMC he has worked with UTI Asset Management Company Ltd.
2) Ardhendu Bhattacharya
Education: Mr. Bhattacharya is a MBA (Marketing) and Bachelor of Engineering.
Experience: Prior to joining SBI Mutual Fund, he has worked with ICICI Bank and Citibank.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | — |
| Lock-in Period | NA |
| Exit Load | 0.1% for redemption within 3 days |
Basic Details
| Fund House | SBI Mutual Fund |
| Launch Date | 27-Oct-20 |
| Return Since Launch | 4.30% |
| Benchmark | NIFTY Short Duration Index |
| Riskometer | Low to Moderate |
| Type | Open-ended |
| Assets | Rs 2,215 Cr |
| (As on 30-Sep-2022) | |
| Expense Ratio | 0.26% |
| (As on 30-Sep-2022) | |
| Risk Grade | Average |
| Return Grade | Average |
SBI Floating Rate Debt Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| SBI Floating Rate Debt Dir | 3.3 | 0.01 | 0.42 | 0.89 | 2.4 | 3.77 | — | — | — | — |
| CCIL T Bill Liquidity Weight | 1.89 | 0.05 | 0.28 | 0.73 | 1.22 | 2.24 | — | — | — | — |
| Debt: Floater | 3.37 | 0.04 | 0.4 | 1.41 | 2.49 | 3.81 | — | — | — | — |
| Rank within category | 7 | 12 | 5 | 11 | 7 | 7 | — | — | — | — |
| Number of funds in category | 12 | 12 | 12 | 12 | 12 | 12 | 7 | 5 | 5 | 0 |
SBI Floating Rate Debt Fund Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age |
| SBI Floating Rate Debt Dir | 3 star | 3.77 | — | — | 0.26 | 2,215 | 4.30 | 0.10 (3) | 2yrs 0mo |
| HDFC Floating Rate Debt Dir | 4 star | 4.31 | 6.19 | 6.83 | 0.26 | 16,088 | 7.83 | — | 9yrs 10mo |
| ABSL Floating Rate Dir | 5 star | 4.47 | 5.80 | 6.75 | 0.23 | 13,618 | 7.99 | — | 9yrs 10mo |
| ICICI Pru Floating Interest Dir | 2 star | 4.32 | 6.67 | 7.20 | 0.59 | 11,106 | 8.27 | — | 9yrs 10mo |
| Nippon Ind Floating Rate Dir | 3 star | 3.47 | 6.53 | 6.84 | 0.27 | 9,074 | 7.93 | — | 9yrs 10mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 60 | 61 |
| Modified Duration (yrs) | 1.10 | 1.05 |
| Average Maturity (yrs) | 1.25 | 2.85 |
| Yield to Maturity (%) | 7.37 | 7.02 |
| Avg Credit Rating | AAA | — |
Chanakya’s Mutual Fund Guidance For SBI Floating Rate Debt Fund
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