SBI Debt Fund Series 180 Days

sthekedar · #1 24th June 2010, 05:25 PM

Hi ,

I have a investable surplus which I have to invest for a period of 180 days.The SBI MF NFO for 180 days is open for subscription from 25th June 2010 to 29th June 2010. I wish to invest in the same. Can you elaborate what yield I can expect at the end of 180 days?

Regards
sthekedar

San Yad · #2 24th June 2010, 05:29 PM

Never put your money which is new in the market.

I understand that SBI is not new in market.

There are many more stable and good yield fund available in the market.

sthekedar · #3 24th June 2010, 06:48 PM

Hi Sanyad,

Thanks for your reply.

I would like to correct the name of the scheme, it's NFO: SBI Debt Fund Series – 180 Days.

Since its corpus is going to be invested in debt instruments, which are pursued to be safer than equity, I hope that I will get reasonable returns.

Regards
sthekedar

Alchemist · #4 24th June 2010, 06:50 PM

You can expect a return similar to that given by bank deposits.

Here is the portfolio of one such scheme:

SBI Debt Fund Series 180 Days 9-G

As you can see, most of the money has been invested in "Certificates of Deposit" of banks.

sthekedar · #5 25th June 2010, 12:22 AM

Thanks Alchemist ,

It was indeed helpful info. I wish to choose the growth option. So the amount at the end of the tenure will be taxable or tax free?

Regards
Sameer

Alchemist · #6 25th June 2010, 08:07 AM

Quote:

Originally Posted by sthekedar

I wish to choose the growth option. So the amount at the end of the tenure will be taxable or tax free?

It will be taxable.

Quote:

If you invest in the growth option of the FMP for less than a year, the gains are added to the investor's income and taxed at the investor's slab rate.

Source.