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SBI Mutual Fund has launched SBI Long Duration Fund, an open-ended debt scheme that seeks to generate regular income in the long term by investing in debt and money market instruments such that the Macaulay duration of the portfolio is greater than 7 Years.
The scheme comes with a relatively high interest rate risk and moderate credit risk.
In a press release, DP Singh, Deputy MD & Chief Business Officer, SBI MF said, “The policy rate cycle is closer to peak and expect moderation in inflation levels. The forward looking estimates on positive real returns make a good case of locking in sovereign yields at current levels. Investors can benefit by investing in a high quality portfolio of government securities locking in yields at prevailing levels where the duration of the fund is in line with their investment goals.”
Rajeev Radhakrishnan and Mohit Jain will co-manage the scheme.
