SBI launches its NFO i.e SBI Balanced Advantage Fund on August 12, 2021, and here are all the details of how you can reap its benefits. But first things first, let’s dive into the basics of an NFO for anyone who is new to this.
What is an NFO?
An NFO translates as New Fund Offer which basically means the first-ever subscription offering that an investment company offers to its investors. It marks the first-ever launching of funds that allows the company to raise capital for buying securities. Mutual funds are common examples of NFOs launched by an investment company.
All details about the SBI Balanced Advantage Fund
SBI announced earlier that their NFO was set to launch on August 12 and today is the big day.
- Their NFO is going to be open till August 25 for investors.
- The least investment amount for the SBI Balanced Advantage Fund is set to be Rs 5,000 and in multiples of Re 1 thereafter, SBI MF informed at a press release.
- This NFO aims to track CRISIL Hybrid 50+50 – Moderate Index TRI.
- The Fund Managers for this SBI NFO are Dinesh Balachandran and Gaurav Mehta for the Equity portion. Dinesh Ahuja is managing funds for the Debt portion whereas Mohit Jain is appointed for overseeing the overseas investments.
Should you subscribe? How can it profit you?
“SBI Balanced Advantage Fund would help investors to fulfill their asset allocation needs and I am confident that the fund would be a very suitable investment option for investors, particularly those who are risk-averse but at the same time are looking for long term wealth creation and want to cushion their investments from volatile market situations”
-Vinay M Tonse, MD and CEO
This means the SBI NFO is a great opportunity for not only the big retail investors with a huge risk appetite but also those who are looking for a great long-term investment option but are not ready to take high risks. This NFO will be profitable for either party and will bring in a significant amount of cash in the long term.
“The SBI Balanced Advantage Fund also provides Systematic Withdrawal Plan (SWP) – a facility to investors who need regular cash flows. Under its SWP facility, investors will have the option to withdraw a fixed percentage of their investment or any specified amount (minimum amount is greater than Rs 500) to meet their regular cash flow needs,” Tonse also added.
This means you can even withdraw cash from time to time based on the NFO regulations which is a great option for those who want to maintain a healthy cash flow for taking out living expenses.
All in all, the SBI NFO is a great addition to your portfolio.
Where to subscribe for SBI NFO – Balanced Advantage Fund?
You can subscribe to the SBI NFO using platforms like Groww, Upstox, Sharekhan, 5paisa among others that have investor-friendly platforms to monitor your investments easily without any hassle.
Conclusion
According to the SBI NFO Fund Managers, this NFO is going to be a long-term wealth creation platform for investors with diverse risk appetites and will be beneficial for seeing high future returns. For anyone who wants to utilize it as a SIP can also reap the benefits from this new NFO hitting the market as it also provides a Systematic Withdrawal Plan for easy cash flow.
