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SBI Balanced Hybrid Fund NFO: SBI Mutual Fund, a leading asset management company in the country, has launched its new fund offer, the 'SBI Balanced Hybrid Fund.' This is an open-ended hybrid scheme that offers investors the opportunity to invest in both equity and debt in a balanced manner.

This NFO opened for subscription today, August 10, and investors can apply until August 24. A key feature of this scheme is that it invests solely in equity and debt instruments and does not employ arbitrage strategies.

1- Flexibility to allocate 40% to 60% to equity and debt

The SBI Balanced Hybrid Fund has the flexibility to allocate its assets across two major categories. Between 40% and 60% of the fund will be invested in equity and equity-related instruments (including REITs). The remaining portion will be invested in debt securities, securitized debt, debt derivatives, and money market instruments.

According to the fund house, the objective of this approach is to participate in stock market growth while simultaneously providing portfolio stability through fixed-income assets.

2- Investments in both domestic and international markets

In addition to the Indian market, this scheme can also invest in foreign securities. It can allocate up to 35% of its net assets to foreign equities, ADRs, GDRs, overseas ETFs, and debt securities. Within the prescribed overseas limits, the scheme can invest up to $25 million in foreign securities and up to $10 million in foreign ETFs.

3- Separate experts to manage equity and debt portfolios

SBI Mutual Fund has appointed separate fund managers to handle the equity and debt components of the portfolio:

Equity Portfolio: This will be managed by Tanmay Desai. Debt Portfolio: This will be managed by Rajiv Radhakrishnan, CIO and Head of Research (Fixed Income).

The benchmark for this fund is the Nifty 50 Hybrid Composite Debt 50:50 Index. The scheme's primary objective is to generate income and capital appreciation over the long term.

4- What is the minimum investment required?

Investors can start investing with a minimum of ₹5,000 during the NFO period. Subsequent investments can be made in multiples of ₹1,000.

5- What is the exit load?

The exit load structure for this scheme is designed to be investor-friendly:

Exemption on 10% of units: No exit load applies if you redeem up to 10% of your investment within one year from the date of allotment.

1% charge: If you redeem more than 10% within the first year, an exit load of 1% will be charged on the excess amount.

After 1 year: No exit load applies to withdrawals made after the completion of the one-year period.

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