What Goals Can Be Achieved Through SBI Dynamic Bond Fund?

Dynamic bond funds are expected to provide optimal returns in the rising as well as falling interest rate scenario, both, by actively managing the portfolio. So, if you a risk-averse investor and looking for investing your capital in a debt fund, then SBI Dynamic Bond Fund is suitable for you. The fund aims to earn optimal returns for the investors in the different economic and fiscal conditions prevailing in the market by churning the portfolio according to it. Keeping all this in mind, the financial analysts of MySIPonline have researched about the scheme, and also provide the details of who should invest in it.

Description	Details
Launch Date	Feb 09, 2004
Category	Debt: Dynamic Bond
NAV (As on Sept 25, 2018)	Rs 21.52
AUM (As on Aug 31, 2018)	Rs 1,239 Cr
Expense Ratio	1.69%
Min. Investment	Rs 5,000
Min. SIP Investment	Rs 1,000
Return Since Inception	5.38%

The fund mainly invests in the debt securities and money market instruments depending on the expected interest rate scenario. It aims to provide high returns to the investors by including high-quality debt securities of varying maturities in its portfolio.

Portfolio Allocation of SBI Dynamic Bond Fund (G)

As per the financial analysts of MySIPonline, the management team of SBI Dynamic Bond follows an active duration management strategy which has kept its portfolio turnover ratio high with 131%.

Portfolio Aggregates	Fund	1Y High	1Y Low	Category
Number of Securities	10	19	7	24
Modified Duration (yrs)	2.49	6.87	0.91	2.63
Average Maturity (yrs)	3.22	10.91	2.10	3.64
Yield to Maturity (%)	7.70	7.71	6.29	8.22

*As on Sept 25, 2018

With deep-rooted research philosophy, the fund management team constructs the portfolio with significant focus on the liquidity in the portfolio and avoids taking high credit risk. It mainly invests in the high credit quality medium interest rate sensitive papers. These majorly include GOI securities, Central Government loans, and certificate of deposits of AA, AAA, SOV and A1+ rating.

Past Performance Analysis of SBI Dynamic Bond Fund (G)

Fund/ Benchmark	Trailing Returns (in %)
	1-Y	3-Y	5-Y	7-Y	10-Y
SBI Dynamic Bond Fund (G)	0.55	7.03	8.06	8.24	7.36
NIFTY Composite Debt Index	2.79	6.1	7.49	7.45	7.01
Category	1.08	6.48	8.17	8.35	7.85

*As on Sept 25, 2018

Following the disciplined and risk-cautious investment procedure, SBI Dynamic Bond Fund growth has generated high returns in the long run. As shown in the table above, the fund has managed to beat the benchmark efficiently in the long run, and provided competitive returns as compared to the category’s average. With these returns, the fund has generated high alpha as compared to the other funds in the category.

These returns and risk measures prove that the fund is capable to offer high returns in the long investment period to the investors. It has also capped the losses in the year 2009, when the benchmark has given negative returns, but it has provided high positive returns.

Suitability: SBI Dynamic Bond Fund (G)

The investors who are looking for investing in this fund should know that it offers a moderate level of risk on the principal amount. So, investors who have to achieve the financial goals such as buying a car, creating a corpus for construction of house and similar within the investment horizon of 3 to 5 years, should invest in it. At the same time, the investors must keep in mind that the rates of RBI keeps fluctuating according to the economy, so if your investment period falls below 3 years, you should avoid investing in the scheme.

 You can invest in SBI Dynamic Bond Scheme via SIP and lumpsum mode to reach your expected goals, but if you are confused with how to initiate or how much to invest, you can consult with our experts at MySIPonlinewho will help you to reach your aim easily.

Can SBI Magnum Global Fund Offer Returns of 18% in Five Years?

If a fund is not performing in the current market situations, that does not mean it will not perform in future as well. One of the star performers in the mid-2000s, SBI Magnum Global Fund, has delivered superlative returns and is amongst the most popular funds in the industry. However, the fund has underperformed in the past two years, due to many global and economic changes such as the trade war which emerged in the world’s two largest economies, i.e., US and China, increase in the prices of crude oil, and much more. If you had invested in the fund from the past many years, then you may know that the fund has delivered good returns as well in various market conditions. Let’s find out is it still worthy of your investment!

An Overview of SBI Magnum Global Fund (G)

Description	Details
Launch Date	Sept 30, 1994
Category	Equity: Thematic-MNC
NAV (As on Sept 25, 2018)	Rs 165.215
AUM (As on Aug 31, 2018)	Rs 3,718 Cr
Expense Ratio	2.39%
Min. Investment	Rs 5,000
Min. SIP Investment	Rs 500
Return Since Inception	14.51%

An open-ended scheme, SBI Magnum Global Fund predominantly invests in the equity and equity-related securities of the multinational companies. It is also investing a small part of its portfolio in the debt instruments to keep the liquidity in the portfolio and to provide stability to the fund during volatility in the equity market.

Portfolio Allocation of SBI Magnum Global Fund (G)

 As per the financial analysts of MySIPonline, the fund has been investing its total corpus in just 38 companies, selecting them on the growth investment philosophy. The fund is selecting the companies whose major shareholding is by the foreign entity, or any Indian company which has 50% turnover from foreign countries, or foreign-listed companies.  

As we look at the sector allocation of the fund, it is overweight in healthcare, chemicals, engineering, services, and technology sectors. In all other industries, it underweights the benchmark. This sector allocation shows that SBI Magnum Global Scheme is currently investing significantly in the sensitive sectors and the other half is invested in the defensive sectors, keeping a small amount in the cyclical sectors. All this shows that the fund can earn high in the long-term and elevated risk so that it can deliver good performance in all the market cycles.

The fund majorly invests in the mid-cap stocks, therefore it is a bit more volatile. It has kept approximately 15% in large and small-cap space also. Henceforth, the investors who have an appetite of tolerating moderately high-risk on their principal amount should invest in the fund.

Past Performance Analysis of SBI Magnum Global Fund (G)

Fund/ Benchmark	Trailing Returns (in %)
	5 Yrs	7 Yrs	10 Yrs
SBI Magnum Global Fund (G)	21.07	16.85	16.48
NIFTY MNC TRI	20.04	18.12	17.14

* As on Sept 24, 2018

 As per the financial analysts of MySIPonline, if we look at the rolling returns of the fund, it has fallen by 14% in 2011 as against the category’s average of 25%, while in 2013 it lost just 6.4% as against 13.4% by peers. Similarly, in 2016, the fund lost -2% against -2.88% by peers. All these return cycles show that the fund is now capable of managing the losses in the bearish market.  

On the contrary, the trailing returns of SBI Magnum Global Fund growth has outperformed the benchmark in the five years but has underperformed in the seven and ten years. These returns depict that SIP is the best way to invest in the fund, and if you want the returns up to 15% from it, you should stay invested for at least 5 years.

 So, if an investor is looking for investing the capital through SIP mode in SBI Magnum Global Fund G with a long-term perspective of at least 5 years, they will get the returns up to 19%.  

SBI Mutual Fund: A Champion Asset Management Company

                        

A go-anywhere approach of investment which is agnostic to the market cap sizes, sectors, and index weights has made SBI Mutual Fund a top fund house of the country. It works on the belief that the market volatility should never distract the fund manager, only business model volatility should. As per the management team of the fund house, they look for the environmental footprints, social impacts, and governance factors before investing in any sector and company. On this strategy, the company is offering various investment solutions under equity, debt, hybrid, solution-oriented, and ETF space. You can invest in these funds through SIP and lumpsum mode by taking the initial assistance of the financial consultants of MySIPonline. 

                           

First non-UTI mutual fund house, SBI MF is a joint venture between State Bank of India, an Indian multinational public sector bank as well as a financial services company, and Amundi (France), one of the leading asset management companies in the world.

Following the philosophy of growth through innovation, the fund house has more than 10 million investors and managing lakhs of folios. Currently, the asset management company has spread its network at 222 places across the country. Other than mutual funds, it is also offering the portfolio management and advisory services. It is also offering offshore fund services to the investors which invest in ADR and GDR doing well-research on the stocks. 

Aim and Vision of SBI Mutual Fund:

Amonsgt one of the largest fund houses, SBI AMC aims at helping its customers to achieve their financial objectives by ensuring excellence services from the first stage of product development to post-investment phase. 

Its vision is to provide the excellent returns with the best standards in customer services, innovation of products, techniques, and technology.

Investment Philosophy of SBI Mutual Fund

Providing growth through innovation, the fund house has an experienced and the market savvy team which prepares comprehensive, analytical and informative reports on sectors and companies, which help the fund managers to identify the stocks that promise excellent performance in the future. It innovates the ideas, processes them into concrete plans for progressive growth. 

Optimal Risk Management

SBI AMC follows an enterprise-wide approach to risk management with the help of experienced and professional risk management team who focuses majorly on identifying potential risk areas, mitigating risk by proposing various measures, and safeguarding investors interest.

Top Performing Schemes of SBI Mutual Fund

Amongst the number of schemes, the top-performing funds of the fund house, which have delivered high returns to the investors in the past are shown in the table. The financial experts of MySIPonline have researched these schemes on the basis of their past performance, strategies, risk measures, and many other parameters. 

                     

Endeavour to outperform the benchmark, SBI Mutual Fund has implemented an active management style based on various aspects such as fundamental analysis, constructing a leading portfolio, etc., which aims at capturing the growth potential from the market at various market rallies. These strategies of the fund management team helped the schemes to yield high returns and perform well in the market amongst its peers. So, if you are looking for investing in any fund of the company, you may connect with our experts at MySIPonline via call or email. 

L&T Infrastructure Fund: A High Earning Growth Plan

With increasing projects in the infrastructure sector, ongoing bullet train project, expressway projects help the sector to grow in the past one year. But investing in the sector directly through equities is highly volatile on your portfolio. Thus, investors are suggested to invest in the sector through L&T Infrastructure Fund. The fund has performed exceptionally well in the past years to provide high returns to the investors. Therefore, the financial analysts of MySIPonline have researched about the fund whose details have been provided in the article below:

An Overview of L&T Infrastructure Fund G

The fund, which was launched in the year 2007 is significantly investing in the equity and equity related securities of the infrastructure theme companies. Currently, it is managing the assets of Rs 2,124 Cr as on Aug 31, 2018, with an expense ratio of Rs 2.41%.

L&T Infrastructure Fund is suitable for the investors who are assured about the industry and have a vast knowledge of it. This is because it is a cyclical sector, which also becomes volatile and provides negative returns as well if the market is not in its favour. Therefore, the scheme is suitable for the investors who have an appetite for tolerating high-risk on their principal amount as well as investment horizon of 3 to 5 years.

Sector Allocation of L&T Infrastructure Fund G

The fund maintains a diversified portfolio by investing across the market capitalisation as well as allocation assets in various sub-sectors. If we look at the sector allocation, as provided in the pie chart above, its significant diversification is in the cyclical and defensive sectors keeping a small corpus in the sensitive sectors.

Besides this, the average market capitalisation of the fund is Rs 22,592.60 Cr as provided on Sept 14, 2018. This capital is invested in the stocks of 50 companies, keeping the portfolio turnover ratio at 33%. This shows that the fund management team of L&T Infrastructure follows the strategy of buy and hold for investing and is highly focused on a limited number of stocks. This focused approach helps the research team of the fund to get in-depth knowledge of every company it is investing in.

Past Performance Analysis of L&T Infrastructure Fund G

As we can see from the table provided above, the fund has provided high compounded returns in the past years beating benchmark as well as category’s average. All these returns have provided the growth outlook to the fund.

As per the financial analysts of MySIPonline, the uptrend in L&T Infrastructure Fund growth can also be seen in its annualised returns. The fund has provided high returns to the investors even when the benchmark and peers were negative. This also shows that the fund can effectively manage the bearish markets and offer good returns to the investors.

The fund is investing with a blend of growth and value investment approach to pick the stocks which has helped the fund to earn high returns in both the market cycles. The considerable investment in various market caps has also helped it to generate high alpha by 11.53% over the past three years (as provided on Aug 31, 2018).

Fund Review: Tata Retirement Savings Fund - Progressive Plan

Tata Retirement Savings Fund Progressive Plan is one of the best retirement solutions for everyone who wishes to increase their savings to enjoy their after work life without being constantly worried about the daily financially expenses. It has surpassed both its benchmark and category in respect of three-year and five-year returns. This scheme aims to invest 80% to 100% of the assets in equity and equity-related instruments which indicates towards the high growth scope that it holds. To know more about this scheme, read this blog to the end.

According to SEBI, Multi cap funds are those funds that invest a minimum of 65% of the assets in equity and equity-related instruments. Being a multicap fund, this investment product by Tata Mutual Fund has been designed keeping in mind the retirement requirements and to help old-aged people at large to live a relaxed life. Let’s read what the experts of MySIPonline have to say about this top retirement plan.

Who Should Invest in Tata Retirement Savings Fund - Progressive Plan?

1. Any person who doesn’t have a retirement plan or even those who have it but are looking for an additional one, may invest in it.
2. Investors who wish to add a plan that can help in wealth gain via investment in multi cap equities may consider this one.
3. Aggressive investors who are ready to earn high no matter what the risk is, should invest in this scheme.

Facts About Tata Retirement Savings Fund - Growth Plan

How Is Tata Retirement Fund Performing?

• This scheme has provided average annual returns of 17.64% since inception.
• Compared to its benchmark, this scheme has surpassed the returns for both three-year and five-year tenure by a good margin.
  

Risk Analysis of Tata Retirement Savings Fund (G)

• The standard deviation of Tata Retirement Savings Fund Progressive Plan which is 15.53 is higher than both its benchmark and category. Even the Beta of the scheme which is 1.05 is higher than its category’s Beta which is 0.97. Both these factors indicate that this fund is likely to fluctuate more in comparison to the other two.
• The Sharpe ratio of the scheme is 0.73 which is higher than both its category’s and benchmark’s ratio which are 0.54 and 0.65, respectively. This indicates that this plan is likely to generate better returns with higher risk.

Asset Allocation of Tata Retirement Savings Fund

• Since this is a multi cap fund, it has invested across equities such as giant-cap, large-cap, mid-cap, and small-cap with the assets allocated in them being 52.43%, 14.12%, 27.45%, and 6%, respectively.
• This multicap allocation will help the investors to get capital appreciation in a balanced manner along with the balanced risk.

 Sectors

• The major allocation has been done in the sectors that come under cyclical category with approximately 60% of the total assets.
• In the sectors that are considered sensitive and defensive, around 20% of the assets have been allocated individually.
• It has invested majorly in financial services followed by consumer cyclical. No assets have been allocated in the real estate and communication sector companies.

Top 10 Holdings

• Approximately, 44% of the total assets have been invested in the top twelve companies, in descending order of the assets allocated in them as mentioned in the above table. This states that it has diversified the assets across companies which is a good step towards risk management.
• It can be seen that the five year returns of almost all the stocks are noteworthy.

Tata Retirement Fund (G) - SIP and Lumpsum Investment

• Investment in this scheme via SIP of Rs. 1000 for three years will generate a maturity amount of Rs. 47,239. Here, the total investment amount was Rs. 36,000 and the wealth gain is of Rs. 11,239.20.
• If an investor invests Rs. 1,00,000 via lumpsum mode, then the wealth gain over time will be Rs. 45,012 generated at the interest rate of 45.01%.

Conclusion

With the improvement in correction phase, equity funds are anticipated to generate higher returns than they are yielding right now. This fund is a great opportunity for the one who seeks to earning high within the time left for retirement. To invest in Tata Retirement Savings Fund - Progressive Plan in a simplified manner, log on to MySIPonline. In case of any doubt or query, feel free to contact us anytime.

How Has SBI Equity Savings Performed in the Past?

Looking forward to getting the tax-free long-term capital gains, then you must go for investment in SBI Equity Savings Fund. The fund has been investing in various securities for capital growth as well as income generation for the long-term investors. The fund has been researched by the financial experts of MySIPonline over multiple parameters, whose details have been provided in the article further.

An Overview of SBI Equity Savings Fund:

Launched in the year 2015, the fund has an AUM of Rs 2,327 Cr as on Jul 31, 2018, and its expense ratio is 2.57%. The hybrid category fund, it invests 36% in equity, 30% in debt, and 32.35% in cash and cash equities. The investment in arbitrage is for providing regular income to the investors, who have invested in it for retirement purpose.

The debt part of SBI Equity Savings Growth Fund is investing in the unrated securities, A1+ securities, cash deposits and cash equivalents. The equity investment of the fund is in various sectors such as financial, automobile, energy, technology, FMCG sector, etc. The major investment of the fund is in the large-cap companies and mid-cap companies who are at the margin of the mid-caps.

Investing in debentures, certificate of deposits, non-convertible debentures, etc., the fund has an average maturity period of 3.5 years. The fund has a portfolio turnover ratio of 89%, which shows that the fund manager keeps churning the portfolio and securities of cash equivalents, to provide the best returns to investors.

Performance Analysis of SBI Equity Savings Fund (G)

The fund has been seen as a tax-efficient investment solution because the dividend paid by it is tax-free. Therefore, the investors who want to enjoy the tax-free equity solution can invest in the fund. It has been working efficiently to offer good returns to investors. It has given the returns of 8.05% since its launch.

SBI Equity Savings scheme was launched a few years back, has provided the returns of 6.2% in 2016 and 14.62% in 2017. These returns have outperformed its benchmark 35% Nifty 50 Arbitrage Index + 35% Nifty 50 + 30% CRISIL Liquid Fund Index as well as the category’s average. As per the fund managers of the fund, Mr Ruchit Mehta, who is managing equity as well as debt and Mr Neeraj Kumar, who is managing arbitrage investments, the AMC has a robust credit risk framework for the investors, which manages the risk in a prudent manner.

However, as per the financial experts of MySIPonline, the fund is a recent entrant in the mutual fund industry. It has delivered the compounded returns of 8.72% in the past three years, which was less than its benchmark but has outperformed the category’s average. So according to them, investors need to wait for sometime to know how the fund will perform in the future. Though, SBI Equity Savings Fund growth is a good fund for those who are looking for wealth creation in the long run.