How to Make a Portfolio Free from High Risk with SBI Dynamic Bond Fund?
If you are interested in a debt-oriented investment, then SBI Dynamic Bond Fund Growth will give you the perfect head start for creating a solid plan attuned to your needs. Rated a four-star fund in the category of dynamic funds by CRISIL, it is one of the favorite picks of the debt lovers, who do not want their funds to get exposed to the risks of equity and want to accomplish their short-term objectives.
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SBI Dynamic Bond Fund – The Preface
SBI Dynamic Bond Fund G, as the name suggests, is a dynamic bond fund that is geared towards acquiring high returns by investing in a rich portfolio comprising of high-quality debt securities having different maturities. Dynamic bond funds is a category within debt mutual funds in which there is a rotational allocation between short-term and long-term bonds so that the fund can leverage on the changing interest rates and thus create good money for the investors.
As an obvious fact in the realm of mutual fund investing, the success or failure of any fund depends upon the judgment taken by the fund managers who are responsible for the creation as well as maintenance of a sound portfolio. The fund managers hired by SBI Mutual Funds to look after sbi dynamic bond g scheme are quite efficient and capable of performing their jobs in the best manner possible. An example to prove this is that in the falling interest rate scenario, the managers of Fund increase the investment in a long-term instrument such as gilts and vice versa. This ensures that the fund extracts the best result every time.
SBI Dynamic Bond Fund G : Features and Benefits
- Doesn’t Involve the Usual Debt Fund Mandate : Debt funds are fenced with tight rules which they ought to follow at all costs. For example, a short-term bond fund is permitted to invest only in the short-term securities and vice-versa. One of the most riveting advantages of SBI Dynamic Bond Growth Fund is that there is no such hard and fast rule to follow. The fund may contain both long-term and short-term securities, depending upon the interest rate movements and the fund manager’s convictions.
- Tax Benefits : Time plays a very important role in mutual funds, especially when the magnitude of advantages is decided by the duration of your investments. To receive the tax benefit of indexation on capital gains, you should at least hold your investment in SBI Dynamic Bond Fund G for at least three years. A premature redemption will not only deprive you of the tax benefits but also make you liable for paying an exit load (if redeemed within 30 days of investment) to the tune of 0.25% of the value of the investments.
- The NAV : Though not directly proportional to the returns or growth, knowing NAV does certainly help to chalk out a superb plan which is falling well within the budget. As of 26th June 2018, the SBI Dynamic Bond Fund G NAV stood at Rs. 21.3552, after experiencing a gain of 0.02% in its value.
- Macroeconomic Factors : To take the best advantage of your investment in SBI Dynamic Bond Fund Growth online, you should plan a long-term investment which is at least 3-5 years long. This is because the changing oil prices, government policies, and other economic factors have a direct impact on dynamic bond funds, thus fuelling risks for the short-term.
- The Returns : Earning good returns from the investment is one of the foremost reasons as to why a person invests in mutual funds . It has spilled some appreciable numbers in the market in the past, where the average of the past five year returns stands at 7.00%, which is a good yield for a fund that is more focused on the high-quality debt instruments rather than incorporating risky equity stocks. The fund has also beaten the benchmark in the 3-year and five-year investment segments, and have set the bar of performance higher for the peers.
Who Can Invest in SBI Dynamic Bond Fund G?
The Fund is strongly recommended for those who struggle to make a wise call on interest movements. Being a dynamic bond, this fund involves the flexibility to swing from short-term maturity instruments to long-term maturity instruments and also the other way round, thus taking advantage of the interest rate fluctuations. This feature, is, however, not present in another category of debt funds, for instance, the fixed income funds.
Hence, if you too suffer in understanding the movements of the interest rates, have a moderate risk appetite and are willing to stay put in a debt fund for 3-5 years, then SBI Dynamic Bond Fund Growth will be perfect for your investment plan. Making a SIP investment through lpl电竞(拉萨)在线下注可靠 will provide with an opportunity to leverage on the volatility and earn some handsome rewards.
What You Should Remember While Investing in SBI Dynamic Bond Growth Fund?
While you may get tempted to invest online in SBI Dynamic Bond Fund G on account of its superb record and a horde other important features, there are certain facts that you ought to get straight before stepping into an investment with it. Take note of the following things before you invest:
- Be sure that you are planning an investment for at least three years or more; else it is not advisable for you to add up this scheme in your investment plan.
- And most importantly, do not compare yourself with other investors as every investor is different and has a different outlook towards his investments. Mixing your objectives and choices with others will jeopardize a healthy plan and decelerate your chances of scoring success.
- Have a proper scan of your profile before you decide on investing in SBI Dynamic Bond Fund Regular Plan G. This involves answering some simple questions like your risk tolerance, your desired rate of returns and your objectives. You may ask your financial advisor, or take the on-call assistance provided by lpl电竞(拉萨)在线下注可靠 .
SBI Dynamic Bond Growth Fund bestows high returns with calculated risk exposure. If you are tired of searching the best scheme that can suit your portfolio, then abandon the search and consider investing in this scheme through lpl电竞(拉萨)在线下注可靠 . Besides a quick investment, you’d also enjoy certain online tools such as the SIP Calculator , Tax Calculator, and several others; all provided free of charge.