SBI FMP-57-1835D
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Business Overview
SBI FMP-57-1835D is a fixed maturity plan that offers investors a secure avenue for wealth accumulation over a defined period. Ideal for conservative investors seeking predictable returns, this product aligns with financial goals without the volatility of equities. It matters as it combines the benefits of debt instruments with the backing of a trusted institution, SBI. This plan is designed to provide stability and capital protection, making it a suitable choice for risk-averse individuals looking to grow their savings effectively.
- Secure investment option for conservative investors
- Defined maturity period for predictable returns
- Backed by the trusted SBI brand
- Offers capital protection and stability
- Ideal for wealth accumulation without market volatility
Investment Thesis
SBI FMP-57-1835D presents a compelling investment opportunity due to its strong backing from the State Bank of India, a trusted promoter. The fund's focus on digital services aligns with the growing trend in financial technology, and its attractive valuation compared to peers makes it a prudent choice for retail investors.
- Strong promoter group: Backed by the reputable State Bank of India.
- Digital services growth: Capitalizes on the expanding fintech landscape.
- Attractive valuation: Positioned favorably against industry peers.
- Stable returns: Focus on fixed maturity plans ensures predictable income.
- Investor-friendly: Designed to meet the needs of retail investors.
Opportunity vs Risk
- Stable interest income potential
- Diversification for fixed income portfolio
- Low credit risk exposure
- Interest rate fluctuations
- Market volatility impacts returns
- Liquidity concerns in secondary market
Peer Perspective
SBI FMP-57-1835D trades at a slight premium compared to peers like HDFC FMP and ICICI FMP. A rerating could occur if it demonstrates consistent margin stability and improved asset quality.
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10BusinessHighThe sector is stable but lacks significant growth drivers.
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10GrowthHighModerate revenue growth observed, but profit consistency is lacking.
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10ProfitabilityHighROE and ROCE are acceptable, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers.
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7BalanceHighDebt levels are manageable, but liquidity is a concern.
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6GovernanceGoodPromoter holding is decent, but there are some pledging issues.
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5DriversGoodLimited growth catalysts identified.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.