Why Is SBI Magnum Low Duration Fund Best Scheme of its Category?

Everyone wants to invest in the best mutual fund schemes. In fact, many of us always keep searching for the best funds of various categories, so that our portfolio grows. So today, the experts of MySIPonline have brought you a fund which is best in low duration mutual fund category, namely SBI Magnum Low Duration Fund. The fund has constantly given good returns and is ideal for short-term investors. Let’s see why we are recommending this fund starting with its basic details.

Outperforming Returns

SBI Magnum Low Duration has delivered outstanding returns all these years. It has always managed to beat the benchmark as well as the category average in its calendar year returns. Besides this, in the past year, the fund has delivered the returns of 7.56% which is higher both than its index and peers. So, investors who want to invest in the fund can expect high returns with moderate risk from it.

High Rated Portfolio

SBI Magnum Low Duration Fund- Growth Plan is investing in 65 securities currently. These instruments are of high credit risk and low-interest rate sensitive. The average rating of its portfolio is AAA, which can yield approximately 8.34% of returns at their maturity. The average maturity of the fund is 0.57 years so that investors can get good returns with the least risk in its portfolio. Most of its instruments are debentures, commercial papers, and bonds. These have a maturity between 6 to 12 months.

Experienced Fund Management

Mr Rajeev Radhakrishnan manages SBI Magnum Low Duration Growth Fund since 2008. He selects the best instruments from the entire range of debt and money market securities in line with the investment objective to provide attractive risk-adjusted returns to its investors. He actively manages the credit risk and interest rate risk of the portfolio to deliver exceptional performances.

Who Should Invest?

SBI Magnum Low Duration Fund- Regular Plan provides investors with an opportunity to generate returns by investing in debt and money market instruments in such a manner that the Macaulay duration of the portfolio is between 6 months and 12 months. So, investors who have a moderately low-risk appetite and 6 to 12 months of the investment horizon.

Investors who want to invest in growth and dividend options of SBI Magnum Low Duration Fund start it off just by registering themselves at MySIPonline. If you face any issue in investing or registering, you can connect us via call or email. You can also post your queries regarding the fund and mutual fund investments here, and our financial experts will reach you soon.

Why Should You Invest in SBI Magnum Low Duration Fund?

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.