SBI Mutual Fund launches Dual Advantage Fund Series II

NFO opens on April 22, 2014 and Closes on May 5, 2014

April 21, 2014 5:47 IST | India Infoline News Service
SBI Mutual Fund, one of India’s largest mutual fund houses today announced the launch of SBI Dual Advantage Fund – Series II, a 36-month close-ended debt-oriented hybrid fund. The scheme under a normal circumstances, will invest 5% to 25% of the assets in Equity & Equity-related instruments and 50% to 95% in Debt and 0% - 25% in Money Market instruments. Under this scheme, Investor can also avail indexation benefits & thereby potential tax efficient returns as per current tax law.

The NFO period of SBI Dual Advantage Fund Series II starts from April 22, 2014 - May 5, 2014.

The investment strategy of SBI Dual Advantage Fund Series II is to invest in the entire range of debt instruments with AA and above rated securities, that are maturing on or before the maturity of the scheme, and adopt a mix of bottom-up and top-down approach for actively managing the residual Equity portion to generate overall potential returns. The scheme will primarily focus on companies that have demonstrated characteristics such as market leadership, strong financials and quality management.

Speaking on the occasion, Mr. Dinesh Khara, MD & CEO, SBI Mutual Fund said, “We at SBI Funds Management are happy to introduce a low volatility and tax efficient investment solution in SBI Dual Advantage Fund Series II. HNIs and Investors with medium risk profile as also first time mutual fund investors would benefit from a three pronged features - quality debt portfolio, growth potential that equity upside would provide and tax efficient returns.”

Further explaining the rationale for investment in SBI Dual Advantage Fund Series II, Mr. Khara said: “Across the different market phases and investment horizon, debt asset class has given relatively stable return, which has added stability to investor’s net asset value. But pure debt portfolio returns might not beat inflation hence it’s important to add a portion of equity to the debt portfolio to improve the performance over longer holding period. And especially now when the yields are favorable, investors could look to invest in this fund. SBI Dual Advantage Fund Series II would provide mix of equity and debt asset class, providing stability and growth opportunities to investors.’’

Mr. Rajeev Radhakrishnan, Head Debt, SBI Mutual Fund said, “A Hybrid scheme like SBI Dual Advantage Fund - Series II, endeavors to combine the benefits of different asset classes viz. Equity and Debt. It seeks to ensure a high accrual through investments in debt securities, while simultaneously seeking to ensure capital appreciation through investments in equity.”

The scheme is benchmarked against Crisil MIP Blended Fund Index and has two plans viz Direct Plan & Regular Plan with both of them offering Growth and Dividend option. The fund is suitable for investor with medium risk appetite, to HNIs who are in highest tax bracket and to first time mutual fund investors.

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