SBI MUTUAL FUND has collected a corpus in excess of ₹12,000 crore in the new fund offer (NFO) stage of its SBI Balanced Advantage Fund, The NFO started on 12 August and closed on 25th August. Being an open-ended fund, investors can also subscribe later to the fund. A balanced advantage fund can modify its allocation to equity and debt according to market conditions. SBI MF had also introduced a unique percentage withdrawal feature in order to provide a steady stream of cash flows to investors. Under this feature, investors can opt for a withdrawal of 0.5% of the invested amount every month, 3% every six months or 6% per annum. However, in case the fund is unable to deliver returns above these rates, the withdrawals would come out of the investors capital. The NFO got more than 3 lakh applications from around the country.
SBI Balanced Advantage Fund, an open-ended dynamic asset allocation fund that seeks to generate long term capital appreciation by aiming to capture the potential upside and limit the downside in volatile equity markets. SBI Balanced Advantage Fund would track CRISIL Hybrid 50+50 – Moderate Index TRI.
SBI Balanced Advantage Fund would manoeuvre across Equity for long-term wealth creation and Fixed Income to provide stability to the overall scheme portfolio. Basis several parameters, such as Valuations, Earnings Drivers, Sentiment Indicator, and the opportunity to generate higher alpha, the Fund Manager of SBI Balanced Advantage Fund would have complete flexibility to manoeuvre across asset classes in the range of 0-100 per cent.
The scheme would invest between 0 percent and upto to a maximum of 100 per cent investment in equity and equity related instruments. It will also invest minimum 0 per cent and upto a maximum of 100 percent investment in Debt securities (including securitized debt) and money market instruments (including Triparty Repo, Reverse Repo and equivalent) and 0 percent to 10 percent in units issued by REITs and InvITs (in line with SEBI limits prescribed from time to time). The scheme may invest in securitized debt upto 50% of the debt portfolio. Exposure to equity derivatives (including writing covered call options in line with SEBI guidelines) may be to the extent of 50% of the net assets. The scheme may invest in debt derivatives to the extent 20% of the net assets of the scheme. The cumulative gross exposure through equity, debt, derivative positions (including fixed income derivatives), repo transactions in corporate debt securities, Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs) other permitted securities/assets and such other securities/assets as may be permitted by SEBI from time to time should not exceed 100% of the net assets of the scheme. For more details on the scheme, please refer to the Scheme Information Document.
