Sbi Mutual To Float Fixed Income F

SBI Mutual Fund is planning to float a fixed income fund which would offer assured monthly returns.

It would be indicating returns, thus becoming the latest to join the bandwagon of schemes to do so.

"We are firming up plans to float a fixed income product to be launched some time in the second quarter of this year. We are in the process of designing the product as a monthly return scheme, by which the unitholder will periodically receive a fixed assured sum," M P Radhakrishnan, managing director, SBI Funds Management, said.

SBI MF is the latest mutual fund to indicate returns for their scheme after the recent Securities and Exchange Board of India (Sebi) decision on MFs.

 

The diktat allows mutual funds launching fixed income schemes to mention an indicative return that the scheme can give unitholders.

Among the mutual funds that have already planned to mention an indicative return for their fixed income products are ITC Classic Threadneedle Asset Manag-ement and Anagram Wellington Asset Management..Anagram would be indicating returns for the entire period of the scheme as a minimum 50 basis points above a pre-determined benchmark. In their case they plan to use the maximum ruling return offered by a bank fixed return deposit.