NFO Alert: SBI Mutual Fund launches dynamic asset allocation active FoF

SBI Mutual Fund has announced the launch of SBI Dynamic Asset Allocation Active FoF, an open-ended fund-of-fund (FoF) scheme that invests in units of actively managed equity and debt-oriented mutual fund schemes.

The New Fund Offer (NFO) period opens on August 25 and closes on September 8.

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The investment objective of the scheme is to generate long-term capital appreciation by investing in actively managed equity-oriented and debt-oriented mutual fund schemes.

“At SBI Funds Management Limited, our focus has always been on delivering innovative investment solutions that help investors navigate changing market cycles with confidence. The SBI Dynamic Asset Allocation Active FoF is one such example, providing a convenient one-fund solution that combines multiple existing strategies through a mix of actively managed equity and debt-oriented funds,” said Nand Kishore, MD & CEO, SBI Funds Management.

“By adjusting allocations across asset classes based on evolving market conditions, the scheme aims to effectively provide diversification, manage risk, and create opportunities for long-term wealth generation,” he added.

“Today, investors are looking to navigate both equity and fixed-income markets with a convenient yet robust asset allocation strategy. The SBI Dynamic Asset Allocation Active FoF seeks to adapt to these evolving market conditions, offering a diversified, all-in-one solution by investing in a mix of actively managed equity and debt-oriented funds,” said D P Singh, Deputy MD & Joint CEO, SBI Funds Management.

The scheme will primarily invest 35–65% of its assets in actively managed equity and equity-oriented schemes, 0–65% in actively managed debt and debt-oriented schemes, and up to 5% in money market instruments.

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The scheme will invest in units of existing mutual fund schemes of SBI Mutual Fund and/or other mutual funds. Investors will bear the recurring expenses of the scheme, in addition to the expenses of the underlying scheme(s).

The minimum application amount during the NFO is Rs 5,000, with additional investments in multiples of Re 1. Subsequent purchases can be made for a minimum of Rs 1,000, also in multiples of Re 1. Investments can be made through Systematic Investment Plans (SIPs) on a daily, weekly, monthly, quarterly, semi-annual, or annual basis.

The fund will be managed by Nidhi Chawla for the equity portion and Ardhendu Bhattacharya for the debt portion.