SBI Corporate Bond Fund: Why Should One Go for It?

If generating regular income is your financial goal, then SBI Corporate bond Fund growth is the best option available for you. Launched in 2004, this credit opportunities fund is designed by the fund managers of SBImf online with an aim to deliver substantial income to the investors in order to help them attain financial stability. Being an open-ended growth scheme, sbi bond fund provides the chance to build commendable returns over time to achieve economic growth in life. The investors who have a low-risk profile and want to gain income from the debt industry must put their funds in sbi corporate bond fund g plan in order to grab the best income opportunity in the market.

Our fund analysts have evaluated SBI Corporate Bond Fund immensely and have concluded that it has the capacity to generate exceptional returns. Since its inception, sbi corporate bond fund growth has maintained stable records by offering positive yields. Hereunder is the overall description of this scheme to help you get its overview.

SBI Corporate Bond Fund Growth: Scheme Details

The investment objective of sbi bond fund scheme is to actively manage a portfolio of qualitative corporate debts as well as money market instruments to provide substantial income and liquidity to the unitholders. It invests in the corporate debt securities with an aim to provide investors with yields spread across the corporate debts by managing the excessive risk. This mutual fund programme follows an active credit-quality management strategy to make a worthwhile investment.

SBI Bond Fund’s NAV amounted to Rs.25.644 as one December 09, 2016 which shows its per unit price in the market. Being a credit opportunities fund in the debt category its main focus is on providing stability of income, but sbi corporate bond fund further aims to flourish the investors’ future by grabbing the best available opportunities in the market and accumulating wealth. One has the option to invest either via SIPs or through lump sum payment. You can further generate the future returns of this scheme prior to investing with the use of SIP planner, and thus it would assist you in taking an apt decision for a productive portfolio.

SBI Corporate Fund Growth: Performance Analysis

While deciding the investment plan, you look forward to gaining a brief analysis of the programme so that you can get a rough idea about its track records. Although it is irrelevant to the decision-making criterion, it is preferred by almost all of us. SBI coprporate bond mutual fund investment plan is among the best-performing debt funds in the industry which can be proved well by the following points of consideration:

  • The scheme is ranked second in the Credit Opportunities Fund category by CRISIL for the quarter that ended in June 2016.
  • The absolute annual returns by the sbi corporate bond fund growth plan have always been appreciable and reached up to 10.6 % in the year 2014. It was 9.6% in 2015.
  • The annualised returns for three and five-year investment are 10.4 and 10.2 percent respectively.
  • The performance is over and above the benchmark, i.e., CRISIL Liquid Fund and its category, by generating an average of 7.89% returns since its inception.

Hence, it can be concluded here that the scheme has maintained a stable position in the industry and is preferred by investors to gain substantial income.

SBI Corporate Fund G: Portfolio Review

With an asset size of Rs.2,321 crore as on November 30, 2016, this scheme holds a remarkable position in the market. The funds of sbi corporate bond fund growth plan are entirely invested in the debts, bonds and other money market instruments and fetch interest at regular intervals. The holdings of this plan include 8.29% Century Textiles & Inds. 2020, 10.1% L&T Vadodara Bharuch Tollway 2021, Aditya Birla Retail 2019, Shriram Transport Finance, 7.52% Rural Electrification 2026, 8.37% Rural Electrification 2020, and so on. The portfolio is well diversified with holdings in the promising entities, and thus it confirms profits for the investors.

Our team of fund analysts have made in-depth research of SBI Corporate Bond Fund, and they believe that this programme has the ability to accomplish the short-term income as well as long-term wealth creation goals. Investing in this plan would help you in achieving desired financial growth.