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.
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.
- 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.
- The fund allocates its assets in a combination of equity and debt.
- The fund can invest in any companies across the market capitalizations & sectors.
- 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:
- Breadth of the market
- Retail participation
- Mutual fund flows
- Primary market activities
Factors considered for Valuations:
- Trailing P/E
- Shiller P/E
- Earnings Yield
- Bond Yield Spread
Step 2: Earning Drivers
Macro Inputs considered for asset allocation:
- Fiscal or Monetary Positions
- Real Rates
- Monetary Policy Frameworks
- Variables of Offshore Markets
Tier 2: Strategy Tilt
Quantitative Framework will be used for Strategy Tilt. Parameters like:
- Market Cap Allocation
- Style Skewness
3. Sector Preference
Tier 3: Stock or Security Selection
- 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
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)|
|Equity and Equity-related securities||65%||100%|
|Debt & money market instruments||0%||35%|
About the Scheme
|Name of the fund||SBI Balanced Advantage Fund|
|Fund launched by||SBI Mutual Fund|
|Asset Management Company||SBI Funds Management Private Limited|
|Type of scheme||An open-ended dynamic equity scheme investing its assets in equity and debt securities.|
|Investment Objective||The 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.|
|Benchmark||CRISIL Hybrid 50+50 - Moderate Index TRI|
|Entry Load||Not Applicable|
- 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
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 & SWP||Available|
|Fund Managers||Mr. Gaurav Mehta, Mr. Dinesh Balachandran, Mr. Dinesh Ahuja, and Mr. Mohit Jain|