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SBI Balanced Advantage Fund

Equity markets are volatile by nature, they go through ups and downs as part of a long cycle. Instead of worrying about it, why not let the experts do it for you? SBI Balanced Advantage Fund is a dynamic asset allocation fund which invests in equity and debt depending on the current market conditions to balance the risk and the reward.

SBI Balanced Advantage Fund employs a strategy that invests in a mix of equity and debt based on an internally devised asset allocation framework. This framework evaluates valuations, sentiments, and earnings, which are key parameters influencing market behaviour. Through this approach, the fund manager dynamically adjusts the allocation between equity and debt, ranging from 0% to 100% in equity, depending on the collective score of these parameters. This allows for a flexible investment strategy that can adapt to changing market conditions.

Why choose SBI Balanced Advantage Fund?

Key Features

Optimal Asset Allocation

Allocation based on various parameters to determine the perfect mix of Long Equity, Arbitrage and Fixed Income

Lower Volatility

Dynamically managed Debt and Arbitrage portion of the scheme helps in reducing the volatility when the equity market turns unfavourable

Complete flexibility

Flexibility to have 0-100 % debt or equity

SWP (A)* Facility

Withdraw a fixed % of the cost of investment or a specified amount to get regular cash flow

* Facility is available in Growth & IDCW option. Withdrawals can be made monthly, quarterly, half-yearly and yearly depending on option chosen. Withdrawals would be treated as redemptions and subject to exit load, if applicable. Please read the Scheme Information Document for more details.

Who Can Invest?

Investors looking for long-term Wealth Creation

Investors looking for a Dynamic solution for the right mix of Debt & Equity

Risk-averse Equity Investors with minimum 3 years+ of Investment Horizon

How does SBI Balanced Advantage Fund work?

The fund follows a Three-tiered investment strategy which finds the right asset mix, determines
the strategy tilt and selects the stocks accordingly.

Stock/Security selection

Equity

1. Portfolios based on high conviction ideas of analyst team and Fund Manager discretion

Debt

1. Investments in high credit/sovereign portfolio to maintain liquidity.

2. Duration management to generate alpha- across the yield curve.

The portfolio is constructed in such a manner that alpha is generated through equity while it aims for stability through debt.

Quantitative Framework

investment strategy is determined using a quantitative framework which decides how we invest in terms of market capitalization, investing style- value/ growth/ quality and sector preference.

Asset Allocation Model

The asset allocation between equity and debt will be decided by the Fund Manager using various parameters such as sentiment indicator, valuations and earning drivers.

Taxation

The scheme will have Equity taxation* when the allocation to equity is >=65%

* Though it is a dynamic asset allocation scheme, the endeavour will be to keep atleast 65% of the total proceeds of the fund in domestic equity & equity related instruments (based on annual average of the monthly averages of opening and closing figures) to attract equity taxation benefits as per prevailing tax laws.

Fund Facts

Investment Objective

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 realized.

Type of Scheme

An open-ended dynamic asset allocation fund

Fund Manager

Mr. Dinesh Balachandran for Equity portion

Ms. Mansi Sajeja for Debt portion

Mr. Pradeep Kesavan is the dedicated fund manager for managing overseas investments

Benchmark Index

Nifty 50 Hybrid Composite Debt 50:50 Index

Exit Load

NIL - If units purchased or switched in from another scheme of the Fund are redeemed or switched out up to 10% of the units (the limit) purchased or switched on or before 1 year from the date of allotment

1% of the applicable NAV - If units purchased or switched in from another scheme of the Fund are redeemed or switched out in excess of the limit on or before 1 year from the date of allotment

NIL - If units purchased or switched in from another scheme of the Fund are redeemed or switched out after 1 year from the date of allotment

Application Amount

Rs. 5000/- and in multiples of Rs. 1 thereafter

Additional Purchase: Rs. 1000/- and in multiples of Rs. 1 thereafter

Downloads

SID

KIM