SBI Mutual Fund to launch SBI Balanced Advantage Fund

Mumbai, August 11, 2021: SBI Mutual Fund today announced the launch of 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. The new fund offer would open on August 12, 2021 and close on August 25, 2021.

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.

Mr. Vinay M. Tonse, MD & CEO, said: “We are happy to launch SBI Balanced Advantage Fund at a very opportune time, when equity markets are primarily getting driven by ample global liquidity. Our new fund offering would follow a 3-tier investment strategy to evaluate the optimal asset allocation across equity and debt based on robust economic and market indicators.”

“SBI Balanced Advantage Fund would help investors to fulfil their asset allocation needs and I am confident that the fund would be a very suitable investment option for investors, particularly those who are risk-averse but at the same time are looking for long term wealth creation and want to cushion their investments from volatile market situations.’’

Mr. D P Singh, Chief Business Officer, said: “Balanced Advantage Funds are an ideal investment option for those seeking to enhance their gains and limit the downside. The SBI Balanced Advantage Fund will move dynamically between equity and debt and follow our robust 3-tier investment process. The fund will focus on achieving superior risk-adjusted returns, while being true to label, it will leverage the benefit of having the flexibility to arrive at an optimum asset allocation. With this new fund offering, we continue to expand our product portfolio for our investors to help them achieve their financial goals efficiently.’’ 

‘’The SBI Balanced Advantage Fund also provides Systematic Withdrawal Plan (SWP) – A facility to investors who need regular cash flows. Under its SWP(A) facility, investors will have the option to withdraw a fixed percent of their investment or any specified amount (minimum amount is greater than Rs. 500) to meet their regular cashflow needs’’ Mr. Singh added. 

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.

The minimum application amount (during the NFO period) required is of Rs. 5,000 and in multiples of Re.1 thereafter. The Fund Managers for SBI Balanced Advantage Fund are Mr. Dinesh Balachandran & Mr. Gaurav Mehta for Equity portion, Mr. Dinesh Ahuja for Debt portion & Mr. Mohit Jain for managing overseas investments.