SBI Dual Advantage Fund Series XXVIII | A Close Ended Hybrid Scheme
SBI Mutual Fund brings you a
unique fund, SBI Dual Advantage Fund - Series XXVIII. SBI Dual Advantage Fund -
Series XXVIII is a 1100 Days close-ended
hybrid scheme. The NFO (New Fund Offer) period
is May 14 – May 28, 2018. In this post, let’s take a look at the features,
objectives, plans, options, and
suitability of SBI Dual
Advantage Fund Series XXVIII | A Close
Ended Hybrid Scheme.
Objectives of SBI Dual Advantage Fund Series XXVIII
The main investment objective
of SBI Dual Advantage
Fund Series XXVIII is to generate income by investing in fixed income
securities maturing on or before the maturity of the scheme. The secondary
objective of SBI Dual
Advantage Fund Series XXVIII is to invest a portion of the scheme corpus in
equity & equity related instruments for capital appreciation. However,
there can be no assurance that the investment objective of the Scheme will be
realized.
Features of SBI Dual Advantage Fund Series XXVIII
1. SBI Dual Advantage Fund
Series XXVIII is a close-ended hybrid scheme.
2. The tenure of SBI Dual
Advantage Fund Series XXVIII is 1100 Days.
3. Income generation from
fixed income securities.
4. Capital appreciation from
equity & equity related instruments.
5. Potential tax-efficient
returns (as per current tax laws).
6. Redemption will only be
allowed on the maturity of the scheme.
7. No redemption or
repurchase of units shall be allowed prior to the maturity of the scheme.
8. The scheme would have two
plans, viz. Direct Plan & Regular Plan.
9. Both plans will have two
options -- Growth and Dividend.
10. The NFO (New Fund Offer)
period is May 14 – May 28, 2018.
Plans & Options offered under SBI Dual Advantage Fund Series XXVIII
SBI Dual Advantage Fund
Series XXVIII would have two plans viz Direct Plan & Regular Plan.
1. Direct Plan
Direct Plan is only for
investors who purchase /subscribe Units in a Scheme directly with the Mutual
Fund and is not available for investors who route their investments through a
Distributor. All the features of the Direct Plan under Scheme will be the same
except for a lower expense ratio.
2. Regular Plan
This Plan is for investors
who wish to route their investment through any distributor.
Both plans of SBI Dual
Advantage Fund Series XXVIII will have two options:
1. Growth
2. Dividend option.
Dividend option has the facility
of payout & transfer. Under dividend transfer facility, investors will have
the option to transfer dividend declared under any of the open-ended schemes
of SBI Mutual Fund. Dividend transfer facility will be available to NFO
investors only.
Growth will be the default
option & dividend payout will be default facility.
Minimum Application Amount for SBI Dual Advantage Fund Series XXVIII
The minimum application amount
is Rs. 5,000/- and in multiples of Rs. 1 thereafter.
Exchange Listing of SBI Dual Advantage Fund Series XXVIII
Units of SBI Dual Advantage
Fund Series XXVIII will be listed on NSE Ltd.
Investment Strategy of SBI Dual Advantage Fund Series XXVIII
The funds collected under SBI
Dual Advantage Fund Series XXVIII shall be invested consistent with the
objective of the scheme in the following manner:
1. Fixed Income / Debt Investments
Investments in securities,
maturing on or before the date of the maturity of the Scheme. Targeted
investment in fixed income / debt
securities between 83% and 95%. Flexibility to invest in the entire range of
debt instruments. Investment in AA or above-rated securities.
2. Equity & Equity-related instruments
Invest in diversified portfolio of Equity &
Equity-related instruments. Targeted investment in Equity & Equity-related
instruments between 5% and 17%. Mix of
bottom-up & top-down approach for stock-picking. Primarily focus on
companies that have demonstrated characteristics such as quality management, market
leadership, and strong financials.
Suitability of SBI Dual
Advantage Fund Series XXVIII
SBI Dual Advantage Fund
Series XXVIII is suitable for
1. Investors with low to
medium risk appetite.
2. High net worth
individuals.
3. First-time mutual fund investors who would like to enjoy the debt
returns with an additional equity upside.
4. An investor who is
looking for income as well as capital appreciation.
Why should you invest in SBI Dual Advantage Fund Series XXVIII?
1. Quality Debt Portfolio
High-quality
debt securities endeavour to minimize
credit risk and matching maturity reduces interest rate risk. Investment in AA
and above rated securities only.
2. Growth Potential
Mainly focus on companies
that have demonstrated characteristics such as quality management, market
leadership, and strong financials. Equity
portion will be actively managed.
3. Tax Efficiency
Avail indexation benefits
and thereby potential tax efficient returns (as per current tax laws).
Disclaimer: This
article is strictly for informational purposes only. Please consult your financial
advisor if in doubt about whether the product is suitable for you.
Also read: InvesTap | SBI Mutual Fund Investment App
Also read: SBI Loan against Mutual Funds
Also read: ELSS (Equity Linked Savings Scheme)
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SBI Dual Advantage Fund Series XXVIII | A Close Ended Hybrid Scheme
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