The NFO of the fund is open for subscription from April 22, 2014 and close on May 5, 2014.
SBI Mutual Fund has launched its 36-months close-ended debt oriented hybrid fund called SBI Dual Advantage Fund – Series II. The NFO of the fund is open for subscription from April 22, 2014 and close on May 5, 2014.
Through a press release, the fund house said that 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 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, said the press release.
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.”
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.
SBI MF manages AAUM of Rs 65,499 crores as on March 31, 2014.
