There are a number of ways in which you can invest, the one trending these days is investment in mutual funds. There are numerous options present in the market in the form of innovative investment schemes. SBI Magnum Low Duration Fund by SBI Mutual Fund is one among the many suitable for conservative investors.
The investment objective of this scheme is to help investors earn regular income by investing in debt and money market instruments by providing liquidity at all times. This is an open-ended scheme with the macaulay duration of the investment lying between 6 to 12 months. Formerly, this scheme was known as SBI Ultra Short Term Debt Fund.
Top Four Reasons to Invest in SBI Low Duration Fund Growth
Below reasons, as to why one should invest in this scheme, have been shortlisted by the experts at MySIPonline after conducting intensive research.
1. Asset Diversification - This scheme has invested across different low duration securities which include AAA, A1+, AA, cash equivalent, etc. Diversifying the assets across a variety of instruments is a right decision as it leads to diversification of risk. The correct selection of the investment portfolio also increases the chances of better earnings.
2. Good Returns - In one year time period, the rate of return generated by this scheme is 6.63% which is more than both its category and benchmark CCIL T Bill Liquidity Weight. In three years time, the returns generated by this scheme is though more than that generated by its benchmark but less than its category’s returns. Talking of the five years time period, it has again succeeded in surpassing the return rate of both the others.
3. Robust Risk Management System - The standard deviation of this scheme is more than its benchmark’s SD but less than its category’s standard deviation. The Beta of the scheme is again less than that of its category. This states that the scheme is less likely to fluctuate in response to the market conditions. The Sharpe ratio of this scheme is 1.27 which is greater than both its benchmark and category’s ratio. This confirms that it has generated good return with the risk taken.
4. Consistent Performer - Talking of consistency, this scheme has generated continuous returns for one, three, five, and seven year in the form of 6.63%, 7.33%, 8.09%, and 8.38%. Looking at these rate of returns, it can be estimated that the performance of this scheme is consistent. Below is the performance graph showing the trailing returns for the period of October 2017 to September 2018.
A Final Note
Investors who wish to park their money for a short-term may invest in SBI Magnum Low Duration Fund by SBI MF. From the above description, it can be estimated that this fund seems to yield optimum and consistent returns with proper risk management and asset allocation. You may invest in it via simple online investment procedure at MySIPonline. In case you have any query regarding regular funds, feel free to post the same here.
No comments:
Post a Comment