SBI Bond Fund

Under the SBI Bond Fund, there are two different mutual funds, namely SBI Dynamic Bond Fund and SBI Corporate Bond Fund. The SBI Dynamic Bond Fund was launched in February of 2004, while the SBI Corporate Bond Fund was launched in January 2019. Both mutual funds are open-ended debt schemes.

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Although both the SBI Bond Funds are open-ended schemes, the Dynamic Bond Fund is an open-ended Dynamic Debt scheme that invests across various bonds and securities for the duration. On the other hand, the Corporate Bond Fund is an open-ended debt scheme that primarily invests in AA+ and above-rated bonds. 

Plans under SBI Dynamic Bond Fund are:

  1. Regular Plans are as follows

    • Regular Plan - IDCW and 
    • Regular Plan-Growth 
  2. Direct Plans are as follows

    • Direct Plan - IDCW and 
    • Direct Plan-Growth 

For SBI Corporate Bond Fund, there are two plans:

  1. Regular Plans are as follows 

    • Regular Plan - Monthly IDCW
    • Regular Plan-Growth
    • Regular Plan - Quarterly IDCW
  2. Direct Plans are as follows

    • Direct Plan - Monthly IDCW
    • Direct Plan-Growth
    • Direct Plan - Quarterly IDCW

Fund Facts

Parameters

Details

Fund House

SBI Mutual Fund

Fund Name

SBI Dynamic Bond Fund (Direct and Regular)

SBI Corporate Bond Fund (Direct and Regular)

Launch Date of the Fund

February of 2004

January of 2019

Benchmark of the Fund

NIFTY Composite Debt Index

NIFTY Corporate Bond Index

Minimum Investment for the Fund

A minimum of INR 5000 for purchase and in multiples of INR 1 after that

 

A minimum of INR 1000 for Additional Purchases and in multiples of INR 1 after that

A minimum of INR 5000 for purchase and in multiples of INR 1 after that

 

A minimum of INR 1000 for Additional Purchases and in multiples of INR 1 after that

Type of Fund

Open-Ended

Open-ended

Entry Load

Referring to SEBI’s guidelines, no entry load is charged on purchases, switch-ins, or additional purchases.

Referring to SEBI’s guidelines, no entry load is charged on purchases, switch-ins, or additional purchases.

Exit Load

If exiting within 1 month from the date of allotment, then for 10%, no exit load, and for remaining investments, an exit load of 0.25%

None

Return Performance

Fund Consistency

Risk Level 

Low to Moderate

Moderate

Investment Objective

The investment objective for both the SBI Bond Funds vary. The investment objective for the SBI Dynamic Bond Fund is to invest in an actively handled portfolio of debt securities of high quality that have varying maturities that shall provide investors with above-average returns. 

For the SBI Corporate Bond Fund, the investment objective is to invest in corporate bonds with a rating of AA+ and above in various money market securities. 

The SBI Dynamic Bond Fund’s portfolio consists of Tata Motors Finance Ltd, Reliance Industries Ltd, Citicorp Finance (India) Ltd, HDFC Credila Financial Services Pvt Ltd, etc. The SBI Corporate Bond Fund’s portfolio consists of Reliance Industries Ltd, NABARD, HDFC Ltd etc.

Fund Summary

Both the SBI Bond Funds have been summarized. The SBI Dynamic Bond Fund is summarized as follows: 

  1. SBI Dynamic Bond Fund - Regular IDCW

    • Risk Level- Low to Moderate
    • NAV - INR 14.5976 as of 22nd of June, 2021
    • Expense Ratio- 1.64% 
    • Fund Started- February 2004
  2. SBI Dynamic Bond Fund - Regular Growth

    • Risk Level- Low to Moderate
    • NAV - INR 27.8447 as of 22nd of June, 2021
    • Expense Ratio- 1.64% 
    • Fund Started- February 2004
  3. SBI Dynamic Bond Fund - Direct IDCW

    • Risk Level- Low to Moderate
    • NAV - INR 16.4819 as of 22nd of June, 2021
    • Expense Ratio- 0.87% 
    • Fund Started- February 2004
  4. SBI Dynamic Bond Fund - Direct-Growth

    • Risk Level- Low to Moderate
    • NAV - INR 29.5079 as of 22nd of June, 2021
    • Expense Ratio- 0.87% 
    • Fund Started- February 2004

The SBI Corporate Bond Fund has been summarized as follows:

  1. SBI Corporate Bond Fund - Regular Monthly IDCW

    • Risk Level- Moderate
    • NAV - INR 11.5431as of 22nd of June, 2021
    • Expense Ratio- 0.81%
    • Fund Started- January 2019 1
  2. SBI Corporate Bond Fund - Regular Quarterly IDCW

    • Risk Level- Moderate
    • NAV - INR 11.8831 as of 22nd of June, 2021
    • Expense Ratio- 0.81%
    • Fund Started- January 2019 
  3. SBI Corporate Bond Fund - Regular Growth

    • Risk Level- Moderate
    • NAV - INR 12.2303 as of 22nd of June, 2021
    • Expense Ratio-  0.81%
    • Fund Started- January 2019
  4. SBI Corporate Bond Fund - Direct Monthly IDCW

    • Risk Level- Moderate
    • NAV - INR 11.6829 as of 22nd of June, 2021
    • Expense Ratio- 0.34%
    • Fund Started- January 2019
  5. SBI Corporate Bond Fund - Direct Quarterly IDCW

    • Risk Level- Moderate
    • NAV - INR 12.0324 as of 22nd of June, 2021
    • Expense Ratio- 0.34%
    • Fund Started- January 2019
  6. SBI Corporate Bond Fund - Direct-Growth

    • Risk Level- Moderate
    • NAV - INR 12.3772 as of 22nd of June, 2021
    • Expense Ratio- 0.34%
    • Fund Started- January 2019

Fund Returns Summary

  1. SBI Dynamic Bond Fund - Regular IDCW

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.14%

    3 Months

    1.06%

    6 Months

    0.63%

    1 Year

    3.42%

    3 Years

    27.14%

    5 Years

    40.46%

    10 Years

    99.42%

  2. SBI Dynamic Bond Fund - Regular Growth

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.14%

    3 Months

    1.06%

    6 Months

    0.63%

    1 Year

    3.42%

    3 Years

    30.46%

    5 Years

    49.24%

    10 Years

    131.29%

  3. SBI Dynamic Bond Fund - Direct IDCW

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.20%

    3 Months

    1.26%

    6 Months

    1.02%

    1 Year

    4.22%

    3 Years

    30.07%

    5 Years

    46.36%

    10 Years

    NIL

  4. SBI Dynamic Bond Fund - Direct-Growth

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.20%

    3 Months

    1.26%

    6 Months

    1.02%

    1 Year

    4.22%

    3 Years

    33.28%

    5 Years

    54.76%

    10 Years

    NIL

  5. SBI Corporate Bond Fund - Regular Monthly IDCW

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.17%

    3 Months

    1.72%

    6 Months

    1.19%

    1 Year

    5.05%

    3 Years

    NIL

    5 Years

    NIL

    10 Years

    NIL

  6. SBI Corporate Bond Fund - Regular Quarterly IDCW

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.17%

    3 Months

    1.71%

    6 Months

    1.19%

    1 Year

    5.05%

    3 Years

    NIL

    5 Years

    NIL

    10 Years

    NIL

  7. SBI Corporate Bond Fund - Regular Growth

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.17%

    3 Months

    1.71%

    6 Months

    1.19%

    1 Year

    5.05%

    3 Years

    NIL

    5 Years

    NIL

    10 Years

    NIL

  8. SBI Corporate Bond Fund - Direct Monthly IDCW

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.21%

    3 Months

    1.83%

    6 Months

    1.43%

    1 Year

    5.57%

    3 Years

    NIL

    5 Years

    NIL

    10 Years

    NIL

  9. SBI Corporate Bond Fund - Direct Quarterly IDCW

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.21%

    3 Months

    1.83%

    6 Months

    1.35%

    1 Year

    5.63%

    3 Years

    NIL

    5 Years

    NIL

    10 Years

    NIL

  10. SBI Corporate Bond Fund - Direct-Growth

    Time Period

    Returns Per Year (Annualized)

    1 Month

    0.21%

    3 Months

    1.83%

    6 Months

    1.43%

    1 Year

    5.56%

    3 Years

    NIL

    5 Years

    NIL

    10 Years

    NIL

Pros and Cons

Pros 

Cons 

A low expense ratio of 0.34% and 0.87%

1-year returns are comparatively lower in this category of up to 3.35% for Dynamic Bond and up to 5.57% in the Corporate Bond

Above-average returns in the 3 years category up to 9.22% for Dynamic Bond

Corporate Bond being new, no information for returns of 3 or more years

Above-average returns in the 5 years category, up to 8.35% for Dynamic Bond

Benefits of SBI Bond Fund

SBI Bond Fund offers plenty of benefits. Although it has plenty of benefits, a few of them are discussed below: 

Benchmark Performance: Both the SBI Dynamic Bond Fund and SBI Corporate Bond Funds perform better than their benchmarks. This proves the reliability of the funds.

Convenience: Once can quickly invest in both the funds by registering on the fund house’s web portal and completing the formalities. After doing so, one can invest either through SIPs or lump sum investments. 

Lower Risk: Both the SBI Bond Funds have lower risk factors which most people seek. Therefore, mutual funds appeal to the people who want to earn moderate returns over an average term. 

Fund House Details

The SBI Bond Funds, SBI Dynamic Bond Fund, and SBI Corporate Bond Fund are managed by the fund house, namely, SBI Mutual Funds. The SBI Mutual Funds was incorporated in the year 1987 and is a joint venture between the State Bank of India and Amundi. Amundi is a European asset management company. 

Mr Dinesh Ahuja has been managing the SBI Dynamic Bond Fund since the year 2011. He has experience in managing bonds for over 20 years. The SBI Corporate Bond Fund is managed by Mr Rajiv Radhakrishnan and Mr Mohit Jain since January of 2019. 

Who Should Invest in SBI Bond Fund?

The SBI Bond Funds will appeal to people willing to take small risks with their investments. Both the bond funds have relatively low risk, although the SBI Dynamic Bond Fund has a lower risk while the SBI Corporate Bond Fund has a relatively higher risk. 

The returns provided by both the mutual funds are over average. The average maturity of the Dynamic Bond Fund is 4.22 years, while that of the Corporate Bond Fund is 2.41 years. The term of these mutual funds, when compared to its competitors, is short. People who want easy returns in the short term can invest in these bonds. 

In Conclusion

Given the track record of the mutual funds, both of them perform pretty well against their competitors. Although these are not the top of the tier mutual funds, they perform adequately to give investors the returns they are looking forward to. The risks being low, one can invest in the mutual fund and find a good set of returns in the short term.

FAQ's

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