SBI Balanced Advantage Fund (2022)

Optimal Asset Allocation

Allocation based on various parameters to determine the perfect mix of Long Equity, Arbitrage and Fixed Income

Lower Volatility

Dynamically managed Debt and Arbitrage portion of the scheme helps in reducing the volatility when the equity market turns unfavourable

Complete flexibility

Flexibility to have 0-100 % debt or equity

SWP (A)* Facility

Withdraw a fixed % of the cost of investment or a specified amount to get regular cash flow

Stock/Security selection

Quantitative Framework

investment strategy is determined using a quantitative framework which decides how we invest in terms of market capitalization, investing style- value/ growth/ quality and sector preference.

Asset Allocation Model

The asset allocation between equity and debt will be decided by the Fund Manager using various parameters such as sentiment indicator, valuations and earning drivers.

Taxation

Presentation

Leaflet

SID

KIM

One Pager

Form

FAQs

The investment objective of the Scheme is to provide long term capital appreciation / income from a dynamic mix of equity and debt investments. However, there can be no assurance that the investment objective of the Scheme will be realized.

The scheme can invest in foreign securities including ADR/GDR/Foreign equity and overseas ETFs and debt securities upto a limit of 20% of the net assets of the scheme.

The scheme performance will be benchmarked to CRISIL Hybrid 50+50 – Moderate Index TRI.

The minimum investment amount for the initial investment is Rs. 5000 and in multiples of Rs. 1 thereafter. Additional purchases can be made in Rs. 1000 and in multiples of Rs. 1.

The minimum redemption that can be done is of Rs. 500 or 1 Units or account balance whichever is lower.

SBI Balanced Advantage fund offers two plans viz Direct and Regular. Direct plan is for investors who will invest directly with fund house or through Registered Investment Advisor. Regular plan is for investors who invest through any mutual fund distributorsincluding banks/wealth managers etc.. Both the plans offer growth and Income Distribution cum capital withdrawal (IDCW) Option.

No exit load will be charged if units acquired are redeemed or switched out upto 10% of the units (the limit) on or before 1 year from the date of allotment. An exit load of 1% is applicable if units are redeemed or switched out in excess of the limit on or before 1 year from the date of allotment. No exit load is applicable for units redeemed or switched-out after 1 year from the date of allotment.

Mr. Dinesh Balachandran and Mr. Gaurav Mehta will be managing the equity portion of the scheme. Mr. Dinesh Ahuja will be the fund manager for the fixed income portion and Mr. Mohit Jain is the dedicated fund manager for managing overseas investments in the scheme.

Asset Allocation in the scheme at any given point would be decided by the fund managers using parameters such as Sentiment Indicator, Valuations and Earnings Drivers. The first step involves analysis of various sentiment indicators (breath of the market, retail participation, MF flows, primary market activities among others) and market valuations (Trailing PE, Shiller PE, Earnings yield/ Shiller Earnings yield Bond yield spread) to determine the broad allocation towards equity (long equity). Further, earnings drivers help in determining the final allocation band for equity (net equity levels).

For the equity portion of the scheme, strategy tilt in terms of market cap allocation, style skewness – value/growth/quality and sector preference would be determined using a quantitative framework. Stock / security selection would be a bottom-up approach based on fund mangers’ conviction and model portfolio. The model portfolios are based on the highest conviction ideas of the analyst team.

The debt portion of the scheme would be invested in high credit and sovereign instruments to maintain liquidity in the scheme. The fund manager can dynamically manage the duration to generate alpha across the yield curve.

No. As an investor, you will not be taxed every time the scheme changes its asset allocation.

The scheme will have equity taxation when the allocation to equity is >=65%. The percentage of equity shareholding or unit held in respect of the fund, as the case may be, shall be computed with reference to the annual average of the monthly averages of the opening and closing figures. SBI Balanced Advantage Fund endeavours to maintain its gross equity exposure greater than or equal to 65%.

Systematic Withdrawal Plan (SWP) is a ready-made tool to get regular cash flows in a very simple and tax-efficient manner. The scheme also offers SWP (A) facility that you can opt for to meet your regular cash flow requirements.

Under this facility, the investor can redeem a fixed amount or a fixed percentage of the cost of investment as on date of registration of SWP (A).

The minimum withdrawal amount should be Rs. 500 to avail the SWP (A) facility.

In case, you mention both fixed % and amount as withdrawal amount under the facility, then fixed % will be considered under SWP (A) by default, subject to the maximum permissible percentage, and minimum withdrawal amount is Rs. 500.

In case, you specify the amount but miss mentioning the frequency for SWP (A), then the default frequency shall be considered as quarterly. In case you fail to tick any of the two options viz., amount and frequency or fixed %, then default shall be considered as quarterly frequency with 1.5 % fixed withdrawal on cost of investment as on date of registration subject to minimum of Rs. 500.

The first trigger of the SWP (A) facility will commence only on or after 25th April 2022. In case start date for the SWP (A) is not selected or legible or is unclear, then withdrawal under this facility will start from the subsequent month/quarter/half year/year.

The first trigger under SWP (A) facility starts only from 25th April 2022 to help create some surplus over the capital invested in the scheme. Thus, facilitating withdrawal out of the potentials gains.

Post April 2022, withdrawals will be made / effected on the 25th of the last month of the particular month/ quarter/ half year/ year and would be treated as redemptions. In case 25th is a non-business day, withdrawals would be effected on the next business day.

Yes, you can opt for this facility at folio/scheme/plan level by specifying the period and will be subject to exit load if any as applicable. You will be required to submit SWP (A) request at least 10 days prior to the first trigger date.

The withdrawal under this facility will terminate automatically if no unit balance is available in the folio/scheme/plan on the date of trigger or if the enrolment period expires; whichever is earlier. In case the unit balance in the folio/scheme/plan falls below the specified amount or % for SWP (A), the entire remaining amount in the folio will be processed and SWP (A) will be terminated.

No, it will not affect your investment in any way. However, the conversion of any physical units into demat mode will result in cancellation of any existing or future SWP (A) facility registration request. The request cannot be resubmitted.

In case there is already an existing SWP, and the investors opts for the SWP (A) facility then both the SWP and SWP (A) facilities will be operational in the scheme.