The SVD was never meant to be a 1 MOA rifle. Regardless of ammunition choice, whether it's handloaded or not.
The 7N1 was the dedicated sniper load for the SVD after the adoption of the SVD in 1963. It was operational in 1966 in the Russian army. This cartridge was made of a copper-washed and annealed steel case, corrosive Berdan primer, extruded powder and a 152-grain steel-jacketed FMJ-BT projectile. Overall projectile length is 1.275 inches, and the diameter is .311 inch.
The ballistics of the 7N1 load is similar to the standard 148-grain PS light ball ammo. To achieve greater accuracy, the 7N1 was manufactured to tighter tolerances. Externally the 7N1 looks identical to the standard Soviet 148-grain ball ammo. The head-stamp consists of '188' which is a factory code. The shipping crates, cans, and paper packets for the 7N1 were marked "SNIPER" in Cyrillic. Without the packaging it is impossible to differentiate the 7N1 from ball. A headstamp indicating production by factory 188 and a date of manufacture between 1966 and 1999 does indicate the possibility of it being 7N1.
For a long time the Russians have also produced high quality 7.62x54R match ammunition, called 'EXTRA' for use in competitions.
-Sources used: Guns and Ammo Combat Arms