SBI Mutual Fund: 3 Debt Schemes for 3 Months to 3 Years, Know the Risks Before Choosing Over an FD

Investors who want to stay away from stock-market volatility often turn to bank fixed deposits for relatively predictable returns. However, debt mutual funds are another option for those willing to accept some market risk in exchange for liquidity and the possibility of competitive returns.

The supplied report highlights three SBI Mutual Fund debt schemes for different investment horizons: SBI Savings Fund, SBI Low Duration Fund and SBI Banking & PSU Fund.

These schemes invest primarily in money-market instruments and debt securities rather than equities. Their suitability ranges from a few months to around three years, depending on the fund.

However, investors should understand the most important difference between these products and a bank FD: debt mutual fund returns are not fixed or guaranteed.

Here is how the three schemes differ.

1. SBI Savings Fund: For a 3-12 Month Investment Horizon

The first scheme highlighted in the report is SBI Savings Fund, which falls under the money-market category.

It is positioned for investors who have surplus cash that they may not need immediately and are looking at a relatively short investment horizon.

According to the report, the scheme invests in money-market instruments with maturities of up t