SBI Mutual Fund Files Draft for New Dynamic Asset Allocation Active FoF

SBI Mutual Fund has filed a draft offer document with SEBI for the launch of the SBI Dynamic Asset Allocation Active FoF, an open-ended fund of fund scheme. The fund’s investment objective is to generate long-term capital appreciation by investing in units of actively managed equity and debt-oriented mutual fund schemes. There is no guarantee that the stated objective will be achieved.

Asset Allocation Pattern

The scheme will invest between 35% to 100% of its assets in equity and equity-oriented schemes and 0% to 65% in debt and debt-oriented schemes. Up to 5% may be allocated to money market instruments, including Tri-party repo, cash, and cash equivalents. It will not invest in derivatives, REITs, InVITs, ADRs, GDRs, or foreign securities.

Minimum Investment and Load

The minimum application amount during the New Fund Offer (NFO) is ₹5,000, with additional purchases allowed in multiples of ₹1. For ongoing investments, the same minimum applies. The exit load is set at 1% if units are redeemed or switched out within 1 year from the date of allotment. There is no exit load if redeemed after 1 year.

Benchmark and Plan Options

The fund will be benchmarked against the NIFTY 50 Hybrid Composite Debt 50:50 Index. Investors can choose between a Regular Plan and a Direct Plan, each offering Growth and IDCW options. IDCW comes with reinvestment, payout, and transfer facilities.

Fund Management 

The equity portion of the fund will be managed by Ms. Nidhi Chawla, and the debt portion by Mr. Ardhendu Bhattacharya. The NAV will be disclosed on SBI MF and AMFI websites by 10:00 AM. on the next business day. The scheme is to reopen for continuous sale and repurchase within five business days from the date of allotment.

Read more: What Is the Minimum Amount You Can Invest in SBI Jan Nivesh?

Conclusion

The SBI Dynamic Asset Allocation Active FoF will invest primarily in other SBI Mutual Fund schemes and aims to offer asset class flexibility through active reallocation. The draft is currently under SEBI review, and launch dates are yet to be announced.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.