SBI Balanced Advantage Fund NFO

 

SBI Balanced Advantage Fund is an open-ended hybrid fund that dynamically manages its asset allocation between long equity including arbitrage and debt securities based on the market dynamics. The Fund aims to capture the potential upside and limit the downside in a volatile equity market. 

The investment objective of the Scheme is to provide long-term capital appreciation / income from a dynamic mix of equity and debt investments. However, there can be no assurance that the investment objective of the Scheme will be realised.

The Scheme proposes to follow a three-tiered investment strategy which would consist of: 

• Asset Allocation 

• Strategy Tilt (Style / Market-cap / Sector allocation) 

• Stock / Security Selection 

The Fund Manager will determine asset allocation between equity and debt depending on prevailing market and economic conditions. The debt-equity mix at any point of time will be a function of various factors such as equity valuations, interest rates, view on the asset classes and risk management etc.

FOR EQUITY: The Fund Manager while selecting stocks will focus on fundamentals of the business, the quality of management, the financial strength of the company, market leadership etc. The Scheme will invest across sectors without any market cap or sectoral bias. 

FOR DEBT: The Scheme will invest in a diversified range of debt and money market instruments. The Fund Manager will allocate the assets of the Scheme taking into consideration the prevailing interest rate scenario, yield curve, yield spread & liquidity of the different instruments.