Dynamic Asset Allocation Active FOF

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SBI Dynamic Asset Allocation Active Fund of Fund (FoF) is an open-ended FoF scheme that invests in actively managed equity and debt mutual fund schemes. The fund aims to harness the power of asset allocation to deliver long-term capital appreciation while effectively managing risk.

Why Asset Allocation Matters

The average investor underperforms the market over long periods of time by a wide margin.

Carl Richards refers to this as the “behavior gap,” which is the difference between the higher investment returns investors can possibly earn, versus the lower returns they earn due to their emotional behavior in responding to whatever is happening in the markets; volatility being the leading culprit.

3 ways how asset allocation tackles volatility:

Diversification

Combining multiple, uncorrelated Content/Images in a single portfolio can help in improving the risk-reward.

Asset Class Timing

Asset allocation is responsible for significant part of the potential portfolio returns, as proved by numerous studies.

Hybrid Portfolio

A multi-asset portfolio with significantly better risk-return characteristics than traditional products.

Why Dynamic Asset Allocation?

The average investor underperforms the market over long periods of time by a wide margin.

Risk Management
Optimal asset mix reduces the impact of market downturns.
Dynamic Asset Allocation
Adjusting allocation in response to changing market cycles can deliver superior returns.
Diversification
Diversification across asset classes (equity and debt) can offer more consistent returns over the long run.

Key Features: The FAN Apporach

Flexible

Dynamically shifts allocations between equity, debt, investment styles, and market capitalizations, responding to evolving market conditions.

Agile

Uses macroeconomic and market data to determine monthly portfolio adjustments.

Nimble

Portfolio is managed and rebalanced monthly, requiring no direct investor intervention.

The FAN approach can result in better tax efficiency as against a DIY approach of asset allocation as movement between funds will result in tax instance in case of the DIY approach. The fund will have a long-term capital gains tax of 12.5% post two years of investment.

Note: Investors are advised to consult their tax adviser before making any decision.

Asset Allocation

35–100% in Actively Managed Equity & Equity oriented Schemes^
0–65% in Actively Managed Debt & Debt oriented Schemes^
0–5% in money market instruments

^Including equity and debt-oriented hybrid schemes. The scheme shall invest in the units of existing mutual fund schemes of SBI Mutual Fund and/or other mutual funds. For complete details, please refer to Scheme Information Document available on www.sbimf.com

Who Should Invest?

Investors aiming for long-term capital appreciation but want the added stability from dynamic allocation between equity and debt.

Those looking for professionally managed portfolios that adjust automatically to shifting market cycles.

Investors preferring tax efficiency, lower drawdowns, and the convenience of not having to manage asset allocation themselves.

Fund Facts

Scheme Name

SBI Dynamic Asset Allocation Active FoF

Type of Scheme

An open-ended fund of fund (FoF) scheme investing in units of actively managed equity and debt oriented mutual fund schemes

Investment Objective

The investment objective of the scheme shall be to generate long-term capital appreciation by investing in actively managed equity oriented and actively managed debt oriented mutual fund schemes.
However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved.

Benchmark

NIFTY 50 Hybrid Composite debt 50:50 Index

Fund Manager

Nidhi Chawla (Equity), Ardhendu Bhattacharya (Debt)

Plans & Options

Direct & Regular Plans: (with Growth, Income Distribution cum capital withdrawal (IDCW) Payout, Transfer & Reinvestment Option)

Minimum Investment

₹ 5000 & multiples of ₹ 1 thereafter

Additional Purchase

₹ 1000 & multiples of ₹ 1 thereafter

Exit Load

For units purchased or switched in from another scheme to the Fund are redeemed or switched out on or before12 months from the date of allotment: Upto 25% of the investments – Nil; For remaining investments – 1% of applicable NAV. For exit after 12 months from the date of allotment: Nil

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