Investment Objective and Approach

The scheme seeks 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.

The fund operates as an open-ended short duration debt scheme that focuses on fixed income investments with moderate duration 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.

The investment approach involves:

- Active management of credit risk and interest rate fluctuations

- Investment in corporate bonds, government securities, treasury bills, and money market instruments

- Maintaining a Macaulay duration between 1-3 years to balance risk and returns

- Focus on investment-grade securities to minimize credit risk

- Regular analysis of macro-economic factors and market dynamics

The scheme endeavours to constantly analyse macro-economic aspects, market subtleties and issuer-specific dynamics before investing. The scheme invests in the entire range of debt securities, intending to provide robust risk-adjusted returns to its investors by actively managing credit risk and interest rate fluctuations in its investment portfolio.

Fund Managers

Rajiv Radhakrishnan is the Current Fund Manager of SBI Short Term Debt Fund Direct Growth fund. Rajeev Radhakrishnan is CIO – Fixed Income at SBI Mutual Fund, managing a debt portfolio exceeding ₹2 lakh Cr.

Rajiv Radhakrishnan's Profile:

- Designation: Chief Investment Officer - Fixed Income

- Experience: A CFA charterholder with over 17 years of experience, he launched his career at UTI AMC's fixed income desk and joined SBI in 2008.

- Education: Rajeev is an Engineering graduate and holds a Masters degree in finance from Mumbai University. Mr. Radhakrishnan is also a Charter holder of the CFA Institute, USA.

- Career Background: Prior to joining SBIFM, Rajeev was Co-Fund Manager for Fixed Income with UTI Asset Management for seven years. Mr. Radhakrishnan joined SBIFM in 2008 as a fixed income portfolio manager, and is currently the Head of Fixed Income.

About the Fund House (AMC)

SBI Mutual Fund stands as one of India's oldest and most established asset management companies. SBI Mutual Fund was launched as a joint venture between State Bank of India (SBI) and AMUNDI of France which is an asset management company, way back in 1987.

Key Highlights of SBI Mutual Fund:

- Establishment: This scheme was made available to investors on 29 Jun 1987.

- Experience: SBI Mutual Fund has a successful track record of over thirty years, with significant investing experience through various business cycles.

- Leadership: The company is led by its CEO Nand Kishore.

- Assets Under Management: SBI Mutual Fund manages assets worth 1190744 crores and was set up on 1987-06-29.

- Fund Range: Its current offering of mutual fund schemes includes 825 debt, 142 hybrid, 136 equity, 109 other, 20 solution oriented funds.

The fund house's strength lies in its experienced debt fund management team and strong research capabilities. Apart from investing in government securities, the strength of the debt fund managers of the Fund House is investing in rated papers of companies having a sound background, strong fundamentals, superior management quality and robust financial strength.

Fund Structure:

- Sponsor: State Bank of India

- Trustee: SBI Mutual Fund Trustee Company Private Limited

- AMC: SBI Funds Management Private Limited (SEBI licensed)

Should I Invest in SBI Short Term Debt Fund?

SBI Short Term Debt Fund is suitable for investors with specific risk and return expectations:

Ideal for:

- Short-term Goals: Owing to its stable characteristic, short-term debt funds help investors achieve short-term goals.

- Risk-averse Investors: The risk of incurring a loss in these funds is low, but they do not guarantee returns or safety of capital like a bank deposit.

- Duration of 1-3 years: They are suitable for investment horizons of one to three years, or for the fixed-income allocation in your longer-term portfolio.

- Better than FD Returns: You can expect to earn higher returns than what a bank fixed deposit can fetch.

Key Benefits:

- Stable Returns: The fund's investment portfolio includes debt securities that provide a fixed rate of return along with a pre-defined maturity date. If held till maturity, these securities are not severely impacted by interest rate fluctuations and provide stable returns.

- Interest Rate Protection: Due to their low average maturity period, these funds are significantly immune from price movements due to interest rate fluctuations.

- Portfolio Diversification: Short term debt funds serve as a substitute to balanced funds, which have a mix of equity and debt instruments.

Investment Minimums:

- Lump Sum: The minimum investment required to start investing in SBI Short Term Debt Fund - Direct Plan is ₹5,000 for the lump sum option and ₹500 for the SIP (Systematic Investment Plan) option.

Risk Considerations:

- There have been instances when short duration funds have incurred losses. Remember, their returns may not be substantially higher than inflation.

- Unlike a bank deposit, there is no contracted interest payment or capital repayment in this fund.

FAQs

What is today's NAV of SBI Short Term Debt Fund?

The latest NAV declared is ₹34.441 as on 28 Aug 2025 at 10:59 pm. The NAV fluctuates daily based on the underlying portfolio's market value.

What is the AUM of SBI Short Term Debt Fund?

The fund currently has an Asset Under Management(AUM) of ₹11,93,297 Cr as of 12 Aug 2025. This substantial AUM reflects strong investor confidence in the fund.

What is the expense ratio of SBI Short Term Debt Fund?

The fund has an expense ratio of 0.85, which is quite reasonable as compared to most other debt mutual fund schemes. This covers fund management and administrative costs.

What are the returns of SBI Short Term Debt Fund since inception?

SBI Short Term Debt Fund Direct-Growth scheme return performance in last 1 year is 8.64%, in last 3 years is 25.27% and 160.58% since scheme launch. Past performance doesn't guarantee future returns.

What is the minimum SIP amount to invest in SBI Short Term Debt Fund?

The min. SIP amount to invest in this scheme is ₹500. This makes it accessible for regular investors to start systematic investing.

How do I invest in SBI Short Term Debt Fund?

You can invest through Allvest's platform, which provides seamless online investment options. Alternatively, you can invest directly through the SBI Mutual Fund website or through authorized distributors.

How to start a SIP in SBI Short Term Debt Fund?

Start your SIP through Allvest's user-friendly platform with just ₹500 monthly. Complete your KYC, select the fund, choose SIP amount and frequency, and set up auto-debit instructions.

How do I automate an SIP in SBI Short Term Debt Fund?

Through Allvest, you can set up automated SIP with ECS/NACH mandate. This ensures regular monthly deductions from your bank account without manual intervention for hassle-free investing.

How can I withdraw/redeem my investment in SBI Short Term Debt Fund?

You can redeem your investment through Allvest's platform online or through the SBI Mutual Fund website. Redemption requests are processed within 1-3 business days depending on the scheme terms.