New Delhi: SBI Mutual Fund has launched its Balanced Advantage Fund (BAF) with a unique withdrawal facility – SWP (Automated) or SWP (A) – under which the investor can assign a percentage withdrawal from the scheme per month, per quarter or per year.

Presently, several mutual fund houses permit investors to designate SWP as a fixed sum. However, this fixed withdrawal does not take into account the fund’s effective value, while a percentage withdrawal will automatically drop when markets swing lower.

SBI Balanced Advantage Fund, launched on August 11, seeks to generate long-term appreciation by aiming to capture the potential upside and limit the downside in volatile equity markets. 

The fund would track CRISIL Hybrid 50+50 – Moderate Index TRI. The open-ended fund will run from August 12 to August 25, however, investors can also transact in it thereafter.

The minimum application amount, during the NFP period, required is of Rs 5,000 and in the multiples of Rs 1 thereafter, SBI MF said in a press release.

The fund will be managed by Gaurav Mehta and Dinesh Balachandran for equity portion, Dinesh Ahuja for debt part, and Mohit Jain for overseas investments, it added.

“SBI Balanced Advantage Fund would manoeuvre across equity for long-term wealth creation and fixed income to provide stability to the overall scheme portfolio,” the statement noted.

Based on many parameters, namely sentiment indicator, valuations, earnings drivers, and the opportunity to generate higher alpha, SBI Balanced Advantage Fund’s manager would have complete flexibility to manoeuvre across asset classes in 0-100% range, it added.

“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,” said Vinay M Tonse, MD and CEO.

“SBI Balanced Advantage Fund would help investors to fulfill 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,” Tonse added.

SBI MF Chief Business Officer DP Singh noted that 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.”

“The SBI Balanced Advantage Fund also provides Systematic Withdrawal Plan (SWP) – a facility to investors who need regular cash flows. Under its SWP 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,” he added.

(Inputs from BT)


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