Investment Objective
The investment objective of SBI Balanced Advantage Fund is to generate long term capital appreciation or income by investing in a dynamic mix of equity and debt investments.
Investment Strategies
- The fund seeks to create a well-diversified portfolio consisting of equity & equity related instruments of companies and a diversified range of debt and money market instruments.
- It retains the flexibility to invest in companies without any market cap or sectoral bias
- The asset allocation between equity and debt instruments will be decided on the basis of prevailing market and economic conditions like equity valuations, interest rates, view on the asset classes and risk management, etc.
- When selecting stocks, the fund manager will focus on factors like companies’ management quality, financial strength, market leadership, fundamentals, etc.
- When investing in debt and money market instruments, the fund manager will factor in the prevailing interest rate scenario, liquidity, yield curve and yield spread of different instruments.
- As part of its debt investment strategy, the fund manager will decide the portfolio duration and credit exposure on the basis of an in-depth research of the inflationary expectations, general macroeconomic condition, political and fiscal environment and other economic considerations.
- The fund may also invest in derivatives and such other derivative instruments as may be introduced and permitted by SEBI from time to time for the purpose of hedging/non-hedging, portfolio balancing, etc.
Who Should Invest
SBI Balanced Advantage Fund is a suitable mutual fund for:
- investors seeking to generate long-term capital appreciation
- Investors seeking to invest in a fund following the dynamic asset allocation strategy between equity and equity related instruments, including derivatives and fixed income instruments