November 7, 2022
mayank
SBI Magnum Constant Maturity Fund
NAV Growth: Rs 52.3614
NAV IDCW Monthly: Rs 17.0322
Suitable For Which Investors?
“This is a fund that invests mainly in bonds issued by the government of India which will mature in 10 years or more. These bonds do not carry any risk of default since the repayment of investors’ money is backed by the government. But they are prone to sharp ups and downs because of changes in interest rates.
However, 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.”
Fund’s Investment Strategy:
The scheme seeks to provide returns to the investors generated through investments predominantly in Government securities issued by the Central Government and/or State Government such that the Average Maturity of the portfolio is around 10 years.
Fund Manager:
1) Dinesh Ahuja
Education: Mr. Ahuja is a B.Com (H) and MMS (Finance).
Experience: Prior to joining SBI AMC he has worked with L&T Investment management Ltd., Reliance Asset Management Ltd and Reliance General insurance Company Ltd.
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) | 1,000 |
| Lock-in Period | NA |
| Exit Load | 0 |
Basic Details
| Fund House | SBI Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 8.84% |
| Benchmark | NIFTY 10 yr Benchmark G-Sec Index |
| Riskometer | Moderate |
| Type | Open-ended |
| Assets | Rs 816 Cr |
| (As on 30-Sep-2022) | |
| Expense Ratio | 0.33% |
| (As on 30-Sep-2022) | |
| Risk Grade | — |
| Return Grade | — |
SBI Magnum Constant Maturity Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| SBI Magnum Constant Mtrty Dir | -0.36 | 0.11 | -0.15 | -0.29 | 3 | 0.13 | 4.95 | 7.31 | 8.16 | — |
| CCIL All Sovereign Bond – TRI | 0.26 | -0.13 | 0.01 | 0.8 | 2.04 | 0.71 | 5.35 | 6.66 | 7.46 | — |
| Debt: Gilt with 10 year Constant Duration | -0.89 | 0.12 | -0.09 | -0.39 | 2.79 | -0.55 | 4.82 | 6.92 | 7.76 | — |
| Rank within category | 1 | 5 | 5 | 2 | 1 | 1 | 2 | 3 | 1 | — |
| Number of funds in category | 4 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 4 | 0 |
SBI Magnum Constant Maturity 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 Magnum Constant Mtrty Dir | Unrated | 0.13 | 4.95 | 7.31 | 0.33 | 816 | 8.84 | — | 9yrs 10mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 7 | 3 |
| Modified Duration (yrs) | 6.75 | 6.48 |
| Average Maturity (yrs) | 9.55 | 9.16 |
| Yield to Maturity (%) | 7.38 | 7.37 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For SBI Magnum Constant Maturity Fund
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