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NEW DELHI: SBI Mutual Fund’s Fixed Maturity Plan (FMP)- Series 58 (1842 days) is available for subscription during the NFO (new fund offer) period that is open till 4 January 2022.
With a tenure of 1842 days, the scheme will mature on the expiry of the tenure of the scheme from the date of allotment. This is part of the fund’s proposed schemes to be launched under SBI Fixed Maturity Plan (FMP) - Series 51 to 60.
The asset allocation comprises debt to an extent of 70-100% and money market instruments from 0-30% of the portfolio. The scheme shall invest in government of India's dated securities, treasury bills, money market instruments, bonds/debt instruments including securitised debt and structured obligations.
The fund will be managed by Ranjana Gupta. It will be benchmarked against CRISIL Medium to Long Term Debt index. The index has been constructed specifically for benchmarking performance of medium to long duration funds. The index comprises of medium to long term debt portfolio comprising of government securities and AAA/AA+/AA rated corporate bonds.
Fixed Maturity Plan (FMP) is a close-ended debt scheme fixed tenure mutual fund scheme that invests its corpus in debt instruments maturing in line with the tenure of the scheme.
Being a close ended scheme, units cannot be subscribed after the closure of NFO. To provide liquidity to investors, units under the scheme will be listed on the BSE. An investor can buy units on the BSE during market hours like any other publicly traded stock. The price of the units in the market will depend on demand and supply at that point of time.
No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Investors wishing to exit may do so by selling their units through stock exchanges. The scheme shall be fully redeemed on the date of maturity and redemption proceeds shall be paid out within 10 business days.
In the potential risk class (PRC) matrix, the scheme is grouped under A – III, which indicates relatively high interest risk and relatively low credit risk.
The minimum application amount is ₹5,000 and in multiples of ₹1 thereafter.
The returns from FMPs are considered as capital gains. The long-term gains (after 36 months) are taxed at 20 per cent with indexation and short-term at normal rates of tax applicable to the assessee.
