SBI Mutual Fund launches new Balanced Advantage Fund: 5 things to know before investing | Personal Finance News

New Delhi: SBI Mutual Fund on Wednesday (August 11) launched its Balanced Advantage Fund (BAF) along with Systemic Withdrawal Plan (Automated) or SWP (A).
Feature. The SWP (A) feature basically allows investors to withdraw a portion of their invested funds at regular intervals. 

How to invest in SBI Balanced Advantage Fund? 

You can invest in the SBI Balanced Advantage Fund from 12 August to 25 August if you want to invest in the New Fund Offer period. Investors will also be allowed to invest in the fund after the offer ends. You can go to the official website of the bank to invest in the newly launched mutual fund. 

Who will manage SBI Mutual Fund’s Balanced Advantage Fund?   

SBI Mutual Fund’s Balanced Advantage Fund will be managed by Dinesh Balachandran and Gaurav Mehta when it comes to the fund’s investment in equities. On the other hand, Dinesh Ahuja will manage the debt investments on the Balanced Advantage Fund.   

Where will SBI Mutual Fund’s Balanced Advantage Fund invest? 

SBI Mutual Fund’s Balanced Advantage Fund will initially invest 40% of the corpus in equities, 35% into debt and will keep 25% as arbitrage. The fund could also invest up to 20% in international stocks. 

“In terms of segments, mid and small caps were cheap relative to large-cap companies a year ago. However, we feel large caps offer better value at this point. The case for growth and value stocks is also evenly balanced compared to the strong case for value, a year ago,” Balachandran was quoted as saying by Mint. Also Read: Big blow for Work From Home employees, 25% pay cut on the table

What is a Systemic Withdrawal Plan (Automated)?  

Systemic Withdrawal Plan (Automated) is very different from the usual mutual funds which allow customers to invest via systemic investment plan (SIP). In SWP (A), investors start receiving their invested funds at regular intervals until the fund depletes. These intervals could vary from months, quarters or years. Also Read: NEFT beneficiary identification: 5 things you need to take care of before transferring money

How will SBI Mutual Fund’s Systemic Withdrawal Plan (Automated) work? 

In the newly launched mutual fund, investors will receive a 0.5% of their investment every month or 3% every half year or 6% every year. The state-owned lender will give investors to change the time period according to their needs.

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