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SBI Short Term Investment Plans

Investments made for a period of 1 year or less are referred to as short term investment plans. Some examples of short term investments are bank Fixed Deposit, savings account, debt instruments, large cap or debt mutual funds, treasury securities, money market account, among others. State Bank of India has a varied range of investment plans from each of these above categories.

Types of Short Term Investment Plans Offered by SBI

Here are some types of short term investment plan from SBI:

  • Bank Fixed Deposit
  • Savings account
  • Short term debt instruments
  • Large cap mutual funds
  • Stock market
  • Treasury securities
  • Money market account

SBI Short Term Debt Fund Overview

SBI Short Term Debt Fund is an open-ended short term debt mutual fund scheme, launched on 27th July, 2007, with a moderately low capital market risk. It invests in debt instruments which are rated not below investment grade and money market instruments such that the Macaulay Duration, is between 1 year and 3 years. It serves as a source of regular income over a short term by investing in Debt and Money Market securities. No exit load on this investment plan.

It is measured against the Crisil Short Term Bond Fund Index. SBI generates returns at the interest rate of 6.64%, over and above the regular growth. The minimum applicable lump sum payment is Rs. 5,000 and further investments can be made in multiples of Re. 1. Minimum additional lump sum applicable on this short term investment plan is Rs. 1,000 and further investments can be made in multiples of Re. 1.

Investment Objective

To provide investors an opportunity to generate regular income through investments in a portfolio comprising predominantly of debt instruments which are rated not below investment grade and money market instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years.

Investment Strategy

SBI Short Term Debt Fund analyzes the fund performance basis different macro-economic parameters, market dynamics, etc. This scheme invests in debt and money market instruments that show the promise of generating risk-adjusted returns to its investors through active management of credit risk and interest rate risk in its portfolio.

Portfolio

The below is the list of portfolio holdings as on 12th December, 2018:

Stock Name% of Total AUM
HOUSING DEVELOPMENT FINANCE CORPORATION LTD.9.19
POWER FINANCE CORPORATION LTD.7.59
REC LTD.7.02
GOVERNMENT OF INDIA6.35
CASH, CASH EQUIVALENTS AND OTHERS5.25
HOUSING AND URBAN DEVELOPMENTN CORPORATION LTD.5.25
INDIAN RAILWAY FINANCE CORPORATION LTD.5.22
LIC HOUSING FINANCE LTD.4.46
SMALL INDUSTRIES DEVELOPMENT4.38
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT4.26
SHRIRAM TRANSPORT FINANCE COMPANY LTD.4.06
POWER GRID CORPORATION OF INDIA LTD.3.97
TATA SONS LTD.3.37
HDFC BANK LTD.3.35
RELIANCE INDUSTRIES LTD.3.32
RAINBOW DEVICES TRUST3.07
INDUSIND BANK LTD.2.02
ORIX LEASING & FINANCIAL SERVICES INDIA LTD.2
L & T FINANCE LTD.1.68
ULTRATECH CEMENT LTD.1.62
STATE BANK OF INDIA1.56
EXPORT-IMPORT BANK OF INDIA1.25
TATA MOTORS FINANCE LTD.1.11
L & T INFRA DEBT FUND LTD.0.84
NABHA POWER LTD.0.84
BMW INDIA FINANCIAL SERVICES PVT. LTD.0.83
NUVOCO VISTAS CORPORATION LTD.0.82
STATE GOVERNMENT OF RAJASTHAN0.78
SP JAMMU UDHAMPUR HIGHWAY LTD.0.63
STATE BANK OF INDIA0.5
FOOD CORPORATION OF INDIA0.44
L & T METRO RAIL (HYDERABAD) LTD.0.43
TATA CAPITAL FINANCIAL SERVICES LTD.0.42
SUNDARAM FINANCE LTD.0.41
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT0.4
GRUH FINANCE LTD.0.33
HDB FINANCIALSERVICES LTD.0.31
NATIONAL HIGHWAYS AUTHORITY OF INDIA0.26
L & T INTERSTATE ROAD CORRIDOR LTD.0.26
REC LTD.0.08
IDFC BANK LTD.0.07
RELIANCE JIO INFOCOMM LTD.0.02

**Expense Ratio is exclusive of Service Tax on Management Fees

Last Dividends

Record DateDividend (Unit)
12th May 20170.0162582
27th Jan 20170.0093894
2nd Dec 20160.013528
25th Nov 20160.0129936

Documents Required

  • Application form duly filled up by the investor
  • KYC Compliance: The PAN card is verified as a part of this process has to be verified by the Government of India. Individuals can either check their KYC compliance or register themselves for KYC through the official website of CDSL Ventures Limited (CVL).

For those investors who are already KYC-compliant, they can submit the KYC acknowledgement letter or a copy of it. If you are not KYC-compliant, you need to submit these documents for completing the KYC process:

  • KYC form
  • Passport-size photograph
  • Proof of Identity (PoI): The acceptable documents are:

    • PAN Card
    • Aadhaar Card
    • Driving Licence
    • Voter’s ID
    • Passport
  • Proof of Address (PoA): The acceptable documents are:

    • PAN Card
    • Aadhaar Card
    • Driving Licence
    • Voter’s ID
    • Passport
    • Ration card
    • Registered residential agreement for rent or sale
    • Flat maintenance bill
    • Copy of insurance
    • Bank account statement that is not more than 3 months old
    • Utility bills like electricity bill, gas bill, landline telephone bill that are not more than 3 months
    • Self-declaration to High Court and Supreme Court judges in case of new residential address
    • PoA issued by Bank Managers of multinational foreign banks or scheduled commercial banks or gazetted officer, etc.
    • Any of the above PoA in the name of the applicant’s spouse
    • Parents have to fill up a third party declaration form for investing on behalf of their children who are minors.
  • For non-individuals like organisations, partnership firms, trusts, Hindu United Families (HUF), etc., the following documents have to be submitted:

    • Proof of Address (POA)
    • Statement of Bank
    • Memorandum and Article of Association
    • Certificate of Registration
    • Deed of declaration of HUF
    • Resolution of the Board of Directors
    • List and signature(s) of authorised person(s)
    • Power of Attorney (for Trust)
    • Trust deeds (for Trust)
    • Certificate of Registration with SEBI (for FIIs)
    • Self-certification on letterhead in the case of banks, government bodies, army organizations, institutional investors and regulatory bodies

How to Apply for SBI Short Term Debt Fund

You can apply for SBI Short Term Debt Fund online by following these simple steps:

  • Visit the official website of SBI Mutual Funds.
  • Click on the ‘Invest Now’ option to be redirected to the login page.
  • If you have already registered yourself on the website, you can enter your User ID and Password/OTP to login. If you are a new user, you can register yourself to progress to the next steps. Otherwise, you can register through any of these social media channels – Facebook, Twitter or Google +.
  • Next, you can pay online to complete the investment process for SBI Short Term Debt Fund.

FAQs on SBI Short Term Investment Plans

What are some of the best short term investment plan?

  • Savings Account
  • Recurring Deposit
  • Money market fund
  • Debt instruments
  • Large cap mutual fund
  • Stock Markets/Derivatives
  • Gold or Silver
  • Investments in NCDs
  • Treasury securities

Where can I invest my short term money?

The following are some of the effective short term investment options you can consider:

  • Savings Account
  • Recurring Deposit
  • Large cap mutual fund
  • Debt instruments
  • Money market fund
  • Stock Markets/Derivatives
  • Gold or Silver
  • Investments in NCDs
  • Treasury securities

Can I invest in mutual funds for 6 months?

You can consider liquid funds like BNP Paribas, ICICI Prudential Liquid Plan and Overnight Funds as an option for investing in mutual funds for a short period of 6 months.

Can I invest in mutual funds for 1 month?

For 1-month mutual fund investments, you can consider liquid funds like BNP Paribas and ICICI Prudential Liquid Plan.

Where can I invest for long term?

  • PPF and EPF
  • Stocks
  • Equity funds
  • Mutual funds
  • Bonds
  • Real Estate
  • Gold
  • ULIPs

How can I invest for 5 years?

Top 5-year investment options are:

  • Equity mutual funds
  • Public Provident Fund (PPF)
  • National Pension System (NPS)
  • Senior Citizens’ Savings Scheme (SCSS)
  • Bank Fixed Deposit (FD)
  • RBI Taxable Bonds
  • Gold
  • Real Estate

Where should I invest for 2 years?

Yes, 2 years is a good investment period, Some top 2-year investment options are:

  • Savings account
  • Bank Fixed Deposit
  • Recurring Deposit
  • Large cap mutual funds
  • Money market instruments
  • Short term debt funds
  • Gold and silver