SBI Floating Rate Debt

SBI Floating Rate Debt Fund NFO Details

SBI Floating Rate Debt Fund NFO Period From 6th October to 20th October 2020:

SBI Mutual Fund introduced its new fund offer, namely, SBI Floating Rate Debt Fund. So then, this fund comes as an open-ended scheme and the fund category is Other Scheme-Other ETFs fund. Besides, the NFO subscription period started on 6th October and it will be closed on 20th October 2020.

NFO Details:

Fund name SBI Floating Rate Debt Fund
Fund House SBI Mutual Fund
Benchmark CRISIL Ultra Short Term Debt Index
NFO Period 6th October to 20th October 2020

The SBI Mutual Fund NFO offered the initial price of Rs. 10 per each unit in the subscription period. Moreover, the face value of the mutual fund is Rs. 10 per each unit. The benchmark of this NFO is CRISIL Ultra Short Term Debt Index.

Entry Load and Exit Load:

There was nil entry load for this NFO. Similarly, nil exit loads applicable to this new fund offer. Similarly, the exit loads, 0.10% for redeemed or switched out of units within 3 days from the allotted units. Nil exit load, for redeemed or switched of units after 3 days from the allotted units.

SBI Floating Rate Debt Fund Minimum Investment Amount:

Significantly, as per the draft prospectus, the minimum investment for the initial purchase stood as Rs. 5,000 and in multiples of ₹ 1 thereafter. Also, for additional purchases, the minimum amount would remain Rs. 1,000 and in multiples of ₹ 1 thereafter. Furthermore, the minimum target amount of the scheme is Rs. 20 Cr.

Allocation Pattern:

Instruments Allocations (% of total assets) Risk Profile
Floating rate securities 65% to 100% Low to Medium
Fixed-rate debt securities, Securitized debt, money market instruments, and debt ETF 0% to 35% Low to Medium
Units issued by REITs and InvITs 0% to 10% Medium to High

Objects of the NFO:

The investment objective of the scheme plans to generate long term capital appreciation through investing in a portfolio comprising substantially of floating rate debt instruments. As well as, the investor needs to know the fund has been introduced with the moderate risk principle. It schemes available in both the direct plan and regular plan.

Disclaimer: This article offers just information regarding the scheme. It does not provide any advice or investment tips to investors. MF investments are fixed to market risk.

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