SBI changing debt fund style

SBI Magnum Gilt Short-term is now SBI Magnum Constant Maturity Fund (Debt: Gilt with 10 year Constant Duration). So it’s going to be much much sensitive to any RBI interest rate changes. This completely changes the investment style and motto of the fund. Kind of surprising. They now only have two holdings: 7.17% GOI 2028 and 6.68% GOI 2031. Initially, they had like 7-9 different short duration center/state govt securities of shorter maturity. The whole point of GITL short term is like same. Height is, I was never notified of same. I am invested in this fund directly and they have all the communication details of mine like mobile, email address.

How can they change the complete investment style? I mean one’s whole idea of investing into funds depends on its investment style.

The AMC must have notified regarding the recent rationalisation and addendums.
Also, it would have given you 1 month time to move out if you don’t like the changes.

More details:

Thanks for reply.

  1. From the link given by you I’ve scanned notices till last year, nothing about my GITL fund except this. This ins’t indicating anything at all.

  1. I did not receive any email/sms for sure. Since this is no entry/exit load fund, not an issue.

BTW the said SEBI guideline (oct 17) recommends AMCs to name and categorize funds properly. Here SBI has changed the whole aim of fund from short-term to large term. I find that bit odd, don’t you agree?

its may be because of recent reclassification of mutual funds by SEBI…that might have forced them to do it.

its also because SEBI classification means they have to invest a certain percentage in a certain type of bond/gilt. so the majority will be short term bonds in ur case but the rest if upto them as i understand