SBI Mutual Fund has launched SBI Dual Advantage Fund — Series I, a 36-month close-ended hybrid fund which will invest in both debt and equity markets.
The new fund offer opened on Monday and will close on January 20. The minimum investment in the scheme is Rs 5,000 and in multiples of Re 1 thereafter. The fund will be listed on the NSE to provide an exit option for investors who want to cash out before maturity.
Dinesh Khara, Managing Director, SBI Mutual Fund, said the new fund on offer provides investors an opportunity to get the benefit of equity market, blended with quality debt product, and hence focusing both on income and growth.
Under normal circumstances, the scheme will invest 10-20 per cent of the assets in equity and equity-related instruments and the rest in debt and money market instruments. The investment in debt instruments will be made in AA or above rated securities. Under this scheme, investor can also avail indexation benefits and thereby potential tax efficient returns under current tax laws.
Rajeev Radhakrishnan, Head — Debt, SBI Mutual Fund, said the dual advantage fund endeavours to combine the benefits of different asset classes to ensure 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 such as direct plan and regular plan with both of them offering growth and dividend option. The fund is suitable for investors with low to medium risk appetite. It also suits high net worth investors in the highest tax bracket and first-time mutual fund investors who would like to enjoy debt returns with an additional equity upside.
suresh.i@thehindu.co.in