SBI Launches Balanced Advantage Fund With Unique Withdrawal Option

SBI Mutual Fund today launched its Balanced Advantage Fund (BAF), which has a one-of-a-kind withdrawal option: SWP (Automated) or SWP (Manual) (A). Under this withdrawal plan, the investor can specify a percentage withdrawal from the program every month, quarter, or year.

Most mutual fund companies allow customers to establish their SWP as a predetermined monthly amount that ignores the fund's actual value and might deplete your investment over time. When markets are trending lower, however, a percentage withdrawal will automatically decline.

New Fund Details

On the equity side, Dinesh Balachandran and Gaurav Mehta will handle the fund, while Dinesh Ahuja will manage the debt side. The New Fund Offer will run from August 12 to August 25, and it is open-ended; you can trade in the fund at any time after that.

Investment Objective

The scheme's investment goal is to achieve long-term capital growth by dynamically allocating assets between equities and equity-related securities, as well as debt and fixed-income instruments.

Features of SBI Balanced Advantage Fund

The fund will allocate a minimum of 65 percent of its assets to equity and equity-related securities and a maximum of 35 percent to debt and fixed income instruments.
The assets of the fund are split between equity and debt.
The fund is open to investing in any company, regardless of market capitalization or sector.
The fund's goal is to provide long-term capital growth as well as stability.

Who Should Invest?

This plan is appropriate for investors who are -

Looking for long-term capital growth.
Investors who seek to invest in a mix of equities and debt securities.
Recommended for investors with a 5-year or longer investment horizon.