Investment Objective and Approach

SBI Long Duration Fund aims to generate returns by investing in debt and money market instruments such that the Macaulay duration of the scheme portfolio is greater than 7 years. The fund invests mainly in bonds maturing in more than seven years and aims to earn better returns than bank fixed deposits of a similar duration.

The fund follows a long-duration strategy that focuses on:

- 93.83% exposure in debt instruments and 5.92% in cash & money market securities

- Investment in government securities, corporate bonds, and other debt instruments with extended maturities

- Potential for higher returns but with volatility in response to interest rate changes

Key Fund Details (as of August 2025):

- AUM: ₹11,93,297 crores as of August 20, 2025

- NAV: ₹12.32 as of August 20, 2025

- Fund Launch Date: December 12, 2022

- Risk Rating: Moderate

- Expense Ratio: 0.67% (Regular Plan) / 0.22% (Direct Plan)

Fund Managers

The SBI Long Duration Fund is managed by a highly experienced team of fund managers:

Mr. Rajeev Radhakrishnan, CFA

- Joined SBIFM as a fixed income portfolio manager in 2008 and currently heads the Fixed Income desk at the AMC

- Previously worked as Co-Fund Manager for Fixed Income with UTI Asset Management for seven years. He is an Engineering graduate with a Masters degree in finance from Mumbai University

- Charter holder of the CFA Institute, USA

Mr. Mohit Jain, CFA

- Joined SBIFM in 2015, previously worked as a Senior Research Analyst in CRISIL Limited

- Engineering graduate from Sathyabama University and completed CFA level III from the CFA Institute, USA

Additional Fund Managers:

- Pradeep Kesavan and Tejas Soman also manage the fund alongside the primary managers

About the Fund House (AMC)

SBI Funds Management Private Limited is one of India's most established and trusted asset management companies:

Company Heritage:

- Established on June 29, 1987 and incorporated on February 7, 1992. It was India's second Mutual Fund after the Unit Trust of India which started operations in 1963

- Joint Venture between State Bank of India and Amundi, a French asset management company

- In July 2004, SBI decided to divest 37% of the Fund and roped in Amundi as a partner

Current Standing:

- As of March 2024, manages assets worth Rs. 9.14 lakh crores and emerged as the 3rd largest Mutual Fund in India based on AUM, moving past Aditya Birla and HDFC Mutual Funds

- Currently manages assets worth ₹10,84,148.36 crores across 44 equity, 70 debt and 15 hybrid schemes

- Registered with the Securities and Exchange Board of India (SEBI)

Notable Achievements:

- First in India to launch an ESG Fund focusing on Environment, Social and Governance for sustainable investment

- In 2015, the Employees' Provident Fund of India invested Rs 5,000 Crore for the first time in a Mutual Fund in India via SBIMF Sensex ETFs

Should I Invest in SBI Long Duration Fund?

Investment Suitability:

- Investment Horizon: Suitable for investors with a minimum 7-year investment horizon to align with the fund's long-duration strategy

- Risk Tolerance: The fund can be fairly volatile in response to changes in interest rates, making it suitable for moderate risk investors

- Return Expectations: Aims to earn better returns than bank fixed deposits of a similar duration

Investment Minimums:

- Minimum lumpsum investment: ₹5,000

- Minimum SIP investment: ₹500

Tax Implications:

- Returns are taxed as per your Income Tax slab

- For investments made on or after April 1, 2023, entire amount of gain is added to the investors' income and taxed according to the applicable slab rate

Expert Recommendation:

Value Research suggests that retail investors can avoid these funds altogether and believes that Short Duration funds are a better alternative for the fixed-income allocation in an investor's portfolio. However, the fund may suit institutional investors or those specifically seeking long-duration exposure.

FAQs

What is today's NAV of SBI Long Duration Fund?

The latest NAV is ₹12.32 as of August 20, 2025 for the direct plan. NAV changes daily based on market conditions.

What is the AUM of SBI Long Duration Fund?

The fund has an Asset Under Management (AUM) of ₹11,93,297 crores as of August 20, 2025.

What is the expense ratio of SBI Long Duration Fund?

The expense ratio is 0.67% for regular plan and 0.22% for direct plan, which covers fund management and administrative expenses.

What are the returns of SBI Long Duration Fund since inception?

The 1-year return is 4.09% while 3-year and 5-year returns are not available as the fund was launched in December 2022.

What is the minimum SIP amount to invest in SBI Long Duration Fund?

The minimum SIP investment amount is ₹500 per month.

How do I invest in SBI Long Duration Fund?

You can invest through Allvest platform by completing your KYC, selecting the fund, and choosing between lumpsum or SIP investment options. Registration and investment can be completed online.

How to start a SIP in SBI Long Duration Fund?

Log into your Allvest account, search for SBI Long Duration Fund, select SIP option, choose investment amount (minimum ₹500), set the date and frequency, and complete the investment process.

How do I automate an SIP in SBI Long Duration Fund?

Set up automatic bank mandate through Allvest platform by providing bank account details and authorizing auto-debit for your chosen SIP amount and frequency.

How can I withdraw/redeem my investment in SBI Long Duration Fund?

You can redeem your units through Allvest platform by placing a redemption request. The redemption amount will be credited to your registered bank account within 1-3 working days.