SBI Mutual Fund (MF) has launched the SBI Floating Rate Debt Fund, an open-ended debt scheme investing predominantly in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/derivatives). The NFO opens for subscription on October 06, 2020 and closes on October 08, 2020. The Entry load will not be applicable for the scheme. The Exit load will 0.10%, for exit within 3 days from the date of allotment and nil, for exit on or after 3 days from the date of allotment. The minimum subscription amount is Rs 5000 and in multiples of Re 1 thereafter.
The scheme’s performance will be benchmarked against its performance to CRISIL Ultra Short Term Debt Index and its fund managers are Rajeev Radhakrishnan and Mohit Jain.
The investment objective of the scheme is to generate regular income through investment in a portfolio comprising substantially of floating rate debt instruments. The scheme may invest a portion of its net assets in fixed rate debt securities swapped for floating rate returns and money market instruments.