Investment Objective
To provide investors with an opportunity to invest in a portfolio which is a mix of equity and equity related securities and fixed income instruments. The allocation between fixed income and equity instruments will be managed dynamically so as to provide investors with long term capital appreciation.
Investment Strategy
SBI Dynamic Asset Allocation Fund endeavors to meet the objective of this fund mainly from asset allocation between asset classes. This approach will help reduce the risk of tracking the individual asset classes. The Scheme will allocate higher weight to the asset class that is relatively favourable under the prevailing market and economic conditions.
The optimal allocation between Equity, Debt and Cash will be based on three principles:
- Momentum
- Rate of change in momentum
- Exhaustion of momentum
The Scheme will use the derivatives for portfolio rebalancing.
