SBI Mutual Fund Launches Balanced Hybrid Fund with Disciplined Framework for Long-Term Growth
The SBI Mutual Fund has launched a new balanced hybrid fund that aims to generate long-term capital appreciation and income by investing in equity and debt instruments.
SBI Mutual Fund Launches Balanced Hybrid Fund with Disciplined Framework
The new fund offer or NFO is open for subscription and will close on August 24. The investment objective of the fund is to generate long-term capital appreciation and income by investing only in equity and debt instruments.
According to Debasish Mishra, MD & CEO, SBI Funds Management, the launch of the SBI Balanced Hybrid Fund strengthens their hybrid investing platform by introducing a disciplined framework for participation across equity and fixed-income markets.
Asset Allocation and Investment Strategy
The fund will invest between 40% – 60% of its assets in equity and equity-related instruments of companies (including REITs) and between 40% – 60% of its assets in Debt Securities (including securitized debt & debt derivatives) & Money Market Instruments including Units of Debt oriented mutual fund schemes and any other security as may be permitted by SEBI/RBI, subject to approval from SEBI/RBI as required.
Market Impact and Details
- The scheme may seek investment opportunities in foreign securities including ADR/GDR/Foreign equity and overseas ETFs and debt securities subject to SEBI (MF) Regulations, 2026. Such investment may not exceed 35% of the net assets of the scheme.
- According to the fund house, pursuant to clause 13.11 of SEBI Master Circular for Mutual Funds dated March 20, 2026, the scheme may invest up to US $25 million in Overseas securities and invest up to US $10 million in Overseas ETFs.
- The benchmark for the fund is Nifty 50 Hybrid Composite Debt 50:50 Index.
Key Takeaways
- The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter with additional purchases of Rs 1,000 and in multiples of Re 1 thereafter.
- The exit load of the Fund is nil, if units purchased or switched in from another scheme of the Fund are redeemed or switched out up to 10% of the units (the limit) purchased or switched on or before 1 year from the date of allotment.
- The exit load will be 1% of the applicable NAV, if units purchased or switched in from another scheme of the fund are redeemed or switched out in excess of the limit on or before 1 year from the date of allotment.
FAQs
What is the investment objective of the SBI Balanced Hybrid Fund?
The investment objective of the fund is to generate long-term capital appreciation and income by investing only in equity and debt instruments.
Who will manage the debt portion of the SBI Balanced Hybrid Fund?
The debt portion of the SBI Balanced Hybrid Fund will be managed by Rajeev Radhakrishnan along with Tanmaya Desai, Fund Manager for equity portion.
What is the benchmark for the SBI Balanced Hybrid Fund?
The benchmark for the fund is Nifty 50 Hybrid Composite Debt 50:50 Index.
Conclusion
The launch of the SBI Balanced Hybrid Fund is a significant development in the mutual fund industry, offering investors a disciplined framework for participation across equity and fixed-income markets. With a strong investment strategy and a team of experienced fund managers, the fund is poised to deliver long-term capital appreciation and income to investors. If you are considering investing in the SBI Balanced Hybrid Fund, it is essential to understand the investment objective, asset allocation, and exit load before making a decision.
