SBI Mutual Fund, a leading asset management company in India, has announced the launch of its new offering, the SBI Dynamic Asset Allocation Active Fund of Fund. This open-ended scheme is designed to invest in actively managed equity and debt mutual fund schemes, providing investors with a dynamic approach to asset allocation.

Key Features of the New Fund

• NFO Period: The New Fund Offer (NFO) opens on August 25 and will close on September 8.
• Minimum Investment: Investors can participate with a minimum investment of ₹5,000.
• Asset Allocation Strategy:
  • 35-65% in equity funds
  • 0-65% in debt funds
  • Up to 5% in money market instruments

Investment Approach

The SBI Dynamic Asset Allocation Active Fund of Fund aims to generate long-term capital appreciation through a flexible asset allocation strategy. The fund will primarily invest in SBI schemes but may also include schemes from other fund houses. This approach allows the fund to adjust its portfolio based on prevailing market conditions, potentially optimizing returns while managing risk.

Fund Management

The scheme will be jointly managed by two experienced professionals:

• Nidhi Chawla will oversee the equity portion
• Ardhendu Bhattacharya will manage the debt component

About SBI Mutual Fund

SBI Mutual Fund is a joint venture between State Bank of India and Amundi, a leading European asset management company. With assets under management worth ₹12 lakh crore, SBI Mutual Fund is one of the largest mutual fund houses in India.

Investor Considerations

Investors looking for a diversified investment option with active management of both equity and debt components may find this fund interesting. However, as with all investments, it's advisable to consider one's financial goals, risk tolerance, and consult with a financial advisor before investing.

The launch of this dynamic asset allocation fund adds to SBI Mutual Fund's diverse portfolio of offerings, potentially catering to investors seeking a balanced and actively managed investment approach in the current market scenario.

SBI Mutual Fund, one of India's leading asset management companies, has announced the launch of its latest offering, the SBI Nifty 1D Rate Liquid ETF – Growth. This new open-ended scheme is designed to track the Nifty 1D Rate Index, providing investors with a high-liquidity, low-risk option for short-term fund parking.

New Fund Offer Details

The New Fund Offer (NFO) for the SBI Nifty 1D Rate Liquid ETF opened on August 4 and is set to close on August 7. Investors can participate in the NFO with units priced at ₹1,000.00 each.

Investment Strategy

The ETF aims to achieve high liquidity and minimal credit risk by adopting the following investment approach:

• 95-100% of the fund will be invested in Tri-Party REPOs, government securities repos, reverse repos, and overnight instruments
• Up to 5% may be allocated to cash equivalents

This strategy allows the fund to track an index that reflects overnight market returns, using government securities as collateral.

Fund Management

Jignesh Shah, who joined SBI Mutual Fund in June, will be at the helm of this new fund. Shah will manage the SBI Nifty 1D Rate Liquid ETF alongside other fixed income ETFs in the company's portfolio.

Risk Factors

While the fund aims for high liquidity and low risk, SBI Mutual Fund has noted that returns are subject to tracking error. The fund house has also emphasized that there is no guarantee of achieving the stated objectives.

Market Positioning

The launch of the SBI Nifty 1D Rate Liquid ETF – Growth comes as a response to the growing demand for short-term, liquid investment options in the Indian market. By tracking the Nifty 1D Rate Index, the fund offers investors exposure to overnight market returns backed by the security of government instruments.

This new offering from SBI Mutual Fund provides an additional tool for investors looking to park funds for short durations while potentially earning returns that reflect the overnight rates in the market. As always, investors are advised to consider their financial goals and risk appetite before investing in any mutual fund scheme.