tickOur Funds

SBI CRISIL IBX Gilt Index- June 2036 Fund

SBI CRISIL IBX Gilt Index- April 2029 Fund

SBI CRISIL IBX SDL Index-September 2027 Fund:

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Target Maturity Fund

If you are looking for relatively better returns for a longer-term horizon, passive debt funds like target-maturity funds would be better option unlike traditional debt funds. They are a type of mutual fund/index fund/ETF’s which have a fixed maturity date. The maturity of securities in the portfolio is aligned with the maturity of the scheme, thus aiding in effectively navigating the risk associated with debt funds.

Benefits of Target Maturity Funds

Liquidity

Being open-ended in nature offers ample liquidity

Fixed Tenure Investment

Target maturity funds have a predefined maturity date, thus enabling portfolio investment in securities maturing around the maturity date of the scheme.

Indexation benefit

Target maturity funds are tax efficient investment options as they are taxable at 20% post indexation when the holding period is more than 3 years.

Target Maturity Fund vs. Traditional Debt Fund

Particulars
Maturity Index Fund
Traditional Debt Investment
Amount Invested (A)
5,00,000
5,00,000
Investment Tenure (Years) (B)
14
14
Assumed CAGR (C)
7.00%
7.00%
Assumed Inflation Rate (per year) (D)
5.00%
5.00%
Investment Corpus (E = Ax(1+C)^B)
12,89,267
12,89,267
Indexed Cost of Acquisition (F = Ax(1+D)^B)
9,89,966
-
Cost of Acquisition (F = A)
-
5,00,000
Capital Gain (G= E-F)
2,99,301
7,89,267
Amount of Tax (H = G x 20% / 30%)
59,860
2,36,780
Amount of Tax (H = G x 20% / 30%)
59,860
2,36,780
Investment Corpus (Post Tax) (I = E (-) H)
12,29,407
10,52,487
Post Tax Return
6.64%
5.46%

As we can see from the above table, Target maturity funds are tax efficient investments as compared with traditional debt investments. As long-term capital gain tax in Debt Mutual Funds is Taxed at 20% post Indexation, as compared to 30% without indexation (assuming highest slab rate) in traditional forms of debt investment

Our Funds

SBI CRISIL IBX Gilt Index- June 2036 Fund

An open-ended scheme investing in constituents of CRISIL IBX Gilt Index – June 2036.

NFO Open

September 22, 2022

NFO Close

October 03, 2022

Benchmark

CRISIL IBX Gilt Index – June 2036

Min. Investment

₹ 5000

Fund Manager -Mr. Dinesh Ahuja

SBI CRISIL IBX Gilt Index- April 2029 Fund

An open-ended scheme investing in constituents of CRISIL IBX Gilt Index – April 2029.

NFO Open

September 26, 2022

NFO Close

October 03, 2022

Benchmark

CRISIL IBX Gilt Index – April 2029

Min. Investment

₹ 5000

Fund Manager -Mr. Dinesh Ahuja

SBI CRISIL IBX SDL Index – September 2027 Fund

An open-ended scheme investing in constituents of CRISIL IBX SDL Index – September 2027.

NFO Open

September 26, 2022

NFO Close

October 03, 2022

Benchmark

CRISIL IBX SDL Index – September 2027

Min. Investment

₹ 5000

Fund Manager -Mr. Dinesh Ahuja

current-nfos

Downloads

SBI CRISIL IBX Gilt Index- June 2036 Fund

SBI CRISIL IBX Gilt Index- April 2029 Fund

SBI CRISIL IBX SDL Index – September 2027 Fund

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