SBI 5-year FD vs Top SBI Debt Mutual Fund: Which of two schemes has given higher return on Rs 5 lakh investment
SBI 5-year FD vs Top SBI Debt Fund: When we talk about guaranteed return small savings schemes, some of the first programmes that strike our minds are fixed deposits (FDs). In contrast, mutual funds don't offer guaranteed returns. Even if we talk about debt funds, they also have some equity exposure and don't offer guaranteed returns.
SBI 5-year FD vs Top SBI Debt Fund: When we talk about guaranteed return small savings schemes, some of the first programmes that strike our minds are fixed deposits (FDs). In contrast, mutual funds don't offer guaranteed returns. Even if we talk about debt funds, they also have some equity exposure and don't offer guaranteed returns. But a lot of people who don't want to put their money for a long time in an investment scheme prefer investing in short- and medium-term debt funds. In many cases, they may offer slightly better returns. SBI is one such institution that offers FDs as well as debt mutual funds. While it is the bank that offers an FD, SBI Mutual Fund offers debt funds. The interest rate for the 5-year SBI FD for general citizens is 6.50 per cent annual, while for senior citizens, it is 7.50 per cent. The top SBI debt fund based on its 5-year performance is SBI Magnum Income Fund - Direct Plan. In this write-up, let's discuss the features of 5-year SBI FD for general citizens and SBI Magnum Income Fund and what Rs 5 lakh investment in each scheme five years ago has grown into today's date.
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SBI 5-Year FD Interest Rate
The interest rate for 5-year FD for general citizens was revised on June 15, 2024. However, there was no change in the rate, and it has been kept at 6.50 per cent. For senior citizens, the revised rate is 7.50 per cent.
SBI Tax Saver FD
The FD is also known as a tax-saving FD as deposits up to Rs 1.50 lakh in a financial year in it are tax-exempt under Section 80C of the Income Tax Act.
SBI 5-Year FD minimum and maximum deposits
The minimum deposit in the FD is Rs 1,000 and in multiples of Rs 100. To take advantage of Section 80C tax benefit, the maximum amount should not exceed Rs 1,50,000.
SBI 5-Year FD minimum and maximum durations
The minimum duration for deposits is five years, while the maximum is 10 years.
SBI Magnum Income Fund - Direct Plan return, AUM, NAV
The fund has given a 7.76 per cent return in the five-year period. The fund's assets under management (AUM) are Rs 1,755 crore, while its net asset value is Rs 69.9649.
SBI Magnum Income Fund - Direct Plan asset allocation
The fund has 97.04 per cent of its investments in debt assets.
SBI Magnum Income Fund - Direct Plan portfolio
It has its total fund in 25 securities. The fund has 39.87 per cent of its investments in the central government's securities, 5.76 per cent in UP state, 5.17 per cent in Karnataka state securities, and 4.34 per cent in Torrent Power.
Rs 5 lakh investment in 5-year SBI FD and SBI Magnum Income Fund - Direct Plan
In the 5-year FD, a Rs 5 lakh investment has given Rs 1,90,210 in interest, and the maturity amount will be Rs 6,90,210.
In the SBI Magnum Income Fund - Direct Plan, a Rs 5 lakh investment made 5 years ago has turned into Rs 7,26,865.