SBI Mutual Fund has initiated a new fund offer (NFO) for the SBI Dual Advantage Fund Series XXX featuring a maturity period of 1166 days. The NFO period of this scheme started on 27th September and will end on 5th October 2018. This is a close ended hybrid scheme that will mainly invest in fixed income instruments, while equity investments will comprise a minor portion of the portfolio. Being a close-ended scheme, you are only allowed to invest in this scheme during the NFO period and redemption of scheme units will only be allowed after maturity i.e. 1166 days from unit allocation.
SBI Dual Advantage Fund Series XXX will invest between 55 to 95% of assets in debt and debt-based instruments as well as up to 10% net assets invested in money market instruments. Equity and equity-oriented instruments will account for 5 to 35% of the fund’s investments. The scheme may maintain up to 40% exposure to domestic securitized debt, while its equity derivative investments are capped at 30% of assets. This scheme will also invest in repo instruments including repo in corporate debt but the scheme will not be engaged in short selling.
The Scheme will use the CRISIL MIP Blended Fund Index as its benchmark which combines the CRISIL Composite Bond Fund Index (85%) with the CNX Nifty 50 Index (15%). The CRISIL Composite Bond Fund Index tracks a debt portfolio comprising various AAA/AA rated corporate bonds as well as various government securities. The CNX Nifty 50 Index consists of the top 50 listed companies in India arranged on the basis of market cap. The following are the 1 year and 5 year returns of these indices*:
| Index Name | 1 Year Returns (%) | 5 Year Returns (%) |
| CRISIL Composite Bond Fund Index | 5.11 | 8.61 |
| CNX Nifty 50 Index | 17.77 | 16.38 |
*The returns data is as per data retrieved on 31st August 2018.
The 1 year and 5 year returns of the CRISIL MIP Blended Index will thus be approximately 7% and 9.8%.
SBI Dual Advantage Fund Series XXX will be jointly managed by Rajeev Radhakrishnan and Ruchit Mehta. Some of the top funds managed by them include SBI Liquid Fund (AUM Rs. 49,732 crores), SBI Magnum Ultra Short Duration Fund (AUM Rs. 3,899 crores) and SBI Debt Hybrid Fund (AUM Rs. 1,430 crores). Among similar close-ended schemes, the SBI Dual Advantage Fund Series XXIII has featured 1 month, 3 month and 1 year returns of -1.26%, 0.09% and 2.34% respectively.
The following are key details regarding the SBI Dual Advantage Fund Series XXX NFO:
| NFO Period | 27th September to 5th October |
| Minimum Investment | Rs. 5000 |
| Benchmark | CRISIL MIP Blended Index |
| Fund Managers | Rajeev Radhakrishnan and Ruchit Mehta. |
Other Funds by SBI Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| SBI Banking & Financial Services Fund | 20.39 | 500.15 | Sectoral/Thematic Fund |
| SBI Technology Opportunities Fund | 17.94 | 84.44 | Sectoral/Thematic Fund |
| SBI Focused Equity Fund | 17.08 | 2681.22 | Multi Cap Fund |
| SBI Small Cap Fund | 14.65 | 836.02 | Small Cap Fund |
| SBI Equity Hybrid Fund | 13.09 | 23581.16 | Aggressive Hybrid Fund |
| SBI Consumption Opportunities Fund | 13.09 | 587.72 | Sectoral/Thematic Fund |
| SBI Magnum Equity ESG Fund | 12.63 | 2172.13 | Sectoral/Thematic Fund |
| SBI Nifty Index Direct Plan | 11.73 | 281.99 | Large Cap Fund |
| SBI Large & Midcap Fund | 11.38 | 2319.13 | Large & Mid Cap Fund |
| SBI Magnum MultiCap Fund | 10.95 | 5165.61 | Multi Cap Fund |
| SBI Gold Direct Plan | 10.84 | 365.52 | Gold Funds |
| SBI Magnum Constant Maturity Fund | 10.36 | 475.78 | Gilt Fund with 10 year constant duration |
| SBI Magnum Global Direct Plan | 10.32 | 3603.5 | Sectoral/Thematic Fund |
| SBI Bluechip Direct Plan | 9.57 | 19087.74 | Large Cap Fund |
| SBI Magnum Medium Duration Fund | 9.41 | 1701.34 | Medium Duration Fund |
| SBI Dynamic Asset Allocation Fund | 9.2 | 161.76 | Dynamic Asset Allocation |
| SBI Magnum Gilt Fund | 9.14 | 2184.65 | Gilt Fund |
| SBI Magnum Income Direct Plan | 9.1 | 1907.63 | Medium to Long Duration Fund |
| SBI Dynamic Bond Direct Plan | 8.98 | 1970.96 | Dynamic Bond Fund |
| SBI Banking and PSU Fund | 8.81 | 2002.03 | Banking and PSU Fund |