logo

SBI Balanced Advantage Fund NFO: Investment Objective, Feature & Investment Strategy

banner-img
author
verified
Gaurav Seth
20 Likes | 668 days ago

Like

Share

isVerifiedExpertAuthor is a Zfunds Verified Expert
author
Gaurav Seth
Gurugram
whatsapp

SBI Balanced Advantage Fund NFO

SBI Mutual Fund has announced the launch of the SBI Balanced Advantage Fund. The scheme would be dynamically investing its assets in equity and debt securities.

The New Fund Offer (NFO) starts on 12th August 2021 and will end on 25th August 2021. 

Investment Objective 

The scheme’s investment objective is to generate long-term capital growth by dynamically investing its assets in equity and equity-related securities along with debt and fixed income securities.

Features

  1. The fund will be investing a minimum of 65% of its assets in equity and equity-related securities and up to 35% of assets in debt and fixed income instruments.
  2. The fund allocates its assets in a combination of equity and debt.
  3. The fund can invest in any companies across the market capitalizations & sectors.
  4. The fund aims to give long-term capital appreciation along with stability.

SBI Balanced Advantage Fund - Three Tiered Investment Strategy    

Tier 1: Asset Allocation

Step 1: Sentiment Indicator and Valuations

Parameters considered for Sentiment Indicator:

  1. Breadth of the market
  2. Retail participation
  3. Mutual fund flows
  4. Primary market activities

Factors considered for Valuations:

  1. Trailing P/E
  2. Shiller P/E
  3. Earnings Yield
  4. Bond Yield Spread

Step 2: Earning Drivers

Macro Inputs considered for asset allocation:

  1. Fiscal or Monetary Positions
  2. Real Rates
  3. Monetary Policy Frameworks
  4. Variables of Offshore Markets

Tier 2: Strategy Tilt

Quantitative Framework will be used for Strategy Tilt. Parameters like:

  1. Market Cap Allocation
  2. Style Skewness
  • Value
  • Quality
  • Growth

3. Sector Preference

Tier 3: Stock or Security Selection

Equity Allocation

  • Stocks will be picked on the conviction of fund managers
  • High conviction ideas of the whole analyst team will be selected

Debt or Fixed Income Allocation

  • High credit and Sovereign Securities will be considered to maintain liquidity
  • Focus on Duration management to generate excess return across the yield curve

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Investors who want to invest in a mix portfolio of equity and debt.
  • Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)
Equity and Equity-related securities 65%100%
Debt & money market instruments0%35%

About the Scheme

Name of the fundSBI Balanced Advantage Fund
Fund launched bySBI Mutual Fund
Asset Management CompanySBI Funds Management Private Limited
Type of schemeAn open-ended dynamic equity scheme investing its assets in equity and debt securities.
Investment ObjectiveThe scheme’s investment objective is to generate long-term capital appreciation by dynamically investing its assets in equity and equity-related securities along with debt securities.
BenchmarkCRISIL Hybrid 50+50 - Moderate Index TRI
Entry LoadNot Applicable
Exit Load

- Redemption of 10% units within 1 year - NIL

- Redemption of more than 10% of units within 1 year - 1%

- Redemption of units after 1 year - NIL

Taxation

Taxed as Equity

-If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15%

-If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year

Minimum Application Amount ₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiples of ₹ 1 thereafter
STP & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Payout of IDCW
  • Dividend of IDCW
Fund ManagersMr. Gaurav Mehta, Mr. Dinesh Balachandran, Mr. Dinesh Ahuja, and Mr. Mohit Jain

Get Investment Advice from India's Top Experts