SBI Floating Rate Debt Fund

Debt

India Debt Long Duration

Long Term

Others

Aggressive growth Investor Profile

Investor Profile

1–3 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Sbi Floating Rate Debt Fund Growth dynamically adjusts bond exposure for optimal returns based on market.

What This Strategy Does

SBI Floating Rate Debt Fund Regular Growth is an India Fund Floating Rate strategy which captures India's ₹25 trillion fixed income market through active duration management, deploying capital across government and corporate bonds to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient performance, outpacing its benchmark and category peers over the one-, three-, and five-year periods, reflecting the effectiveness of its investment process.

Differentiated Positioning

The fund's strategic allocation to government securities and corporate bonds, coupled with its focus on duration management, sets it apart from peers in navigating interest rate cycles.

Favorable Risk Profile

With its emphasis on floating-rate instruments and active management, the fund aims to provide a compelling risk-adjusted return profile, mitigating the impact of potential interest rate volatility.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

-1.1% AnnuallyAlpha

+6.3% vs +12.8% benchmarkSince Inception

+7.5% vs +6.3% benchmark3Y Annualized

+6.5% vs +6.5% benchmark5Y Annualized

SBI Floating Rate Debt Fund

Benchmark Index

Benchmark Performance Comparison

Sbi Floating Rate Debt Fund

FD Returns

Risk Profile

Standard Deviation0.6%

Sharpe Ratio-0.75

Beta1.99

Upside Capture108%

Detailed Risks

Market Risk

Potential recession could trigger higher defaults, impacting floating rate debt.

Liquidity Risk

Volatility spikes could impair fund's ability to rebalance floating rate exposures.

Concentration Risk

Concentrated in floating rate debt, vulnerable to credit cycle turns.

Specific Strategy Risk

Regulatory changes to floating rate debt issuance could disrupt strategy execution.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Delivers stability through exposure to floating rate debt instruments, mitigating interest rate risk. As rates rise, coupons reset higher, preserving portfolio income. The impact is reduced volatility and steady returns across rate cycles. Suitable for investors seeking predictable fixed income exposure with limited duration risk.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery gaining traction. This normalization backdrop, supported by trends like reviving capex and credit growth, offers an attractive entry point. However, risks such as margin pressures and cyclicality in sectors like consumer discretionary and industrials warrant a balanced approach.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current environment through its diversified exposure across consumer, financial, and technology sectors. The portfolio's holdings in market leaders combined with a flexible, risk-adjusted approach appears aligned with the mid-cycle dynamics. With around 70 holdings and a moderate beta, the strategy stands to benefit from the normalization while maintaining an appropriate risk profile.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on companies with pricing power, recurring revenue streams, and strong balance sheets may provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a combination of quantitative screening for quality metrics like high returns on capital, stable cash flows, and balance sheet strength, complemented by fundamental research into long-term competitive positioning and growth runways. Selection: The selection process suggests a preference for companies operating in industries with high barriers to entry, sustainable competitive advantages, proven management execution, and attractive reinvestment opportunities to compound growth over an extended horizon. Construction: Portfolio construction is consistent with a multi-cap core approach, maintaining exposure across sectors and market capitalizations, with individual position sizes reflecting conviction levels and risk management considerations to enhance diversification and moderate volatility.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

7.02% Govt Stock 2031Utilities21.40%

TrepsUtilities18.89%

7.36% Karnataka Sgs 2034Utilities10.09%

State Government Of RajasthanUtilities8.97%

7.57% Gujarat Sgs 2031Utilities7.38%

7.0% Tamilnadu SDL 2031Utilities6.48%

State Government Of SikkimUtilities4.81%

Aditya Birla Housing Finance LimitedUtilities4.37%

6.9% Govt Stock 2065Utilities3.97%

7.57% Maharashtra Sgs 2031Utilities3.69%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Rajeev Radhakrishnan

Mr. Rajeev Radhakrishnan has experience of 25 years. Manages 100 funds at SBI Funds Management Ltd with an AUM of approximately ₹83,597 Cr Holds a MMS degree.

42 years

Combined Team Experience

₹ 84,347 Cr

Assets Under Management

Ardhendu Bhattacharya

Co-Portfolio Manager

Mr. Ardhendu Bhattacharya has experience of 16 years. Manages 78 funds at SBI Funds Management Ltd with an AUM of approximately ₹750 Cr Holds a PGDM degree.

CW Expert Take

SBI's fund management approach reflects their banking heritage, conservative risk frameworks with long-term conviction. They leverage extensive on-ground presence for grassroots research, particularly valuable in equity investing. Their fixed income team benefits from deep government securities market access and understanding of monetary policy transmission.

Firm Overview

Total AUM₹12,41,484.56 Cr

Investment Philosophy & Approach

Disciplined Approach

SBI Funds follows a disciplined investment approach focused on rigorous research.

Risk Management

Robust risk management practices with independent monitoring of various risks.

Long-Term Focus

Emphasis on long-term capital allocation with remuneration tied to rolling returns.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.56%

Exit Load0.1

Regulatory & Tax Information

INF200KA1R15

ISIN

DailyDealing Frequency

CRISIL Liquid Debt TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)