Wednesday 4 July 2018

SBI Dual Advantage Fund - Series XXIX | Get the power of equity and debt

SBI Dual Advantage Fund - Series XXIX | Get the power of equity and debt

SBI Dual Advantage Fund is back with series XXIX. This fund is 1100 Days close-ended hybrid scheme. The New Fund Offer price for the scheme is Rs 10 per unit. The NFO (New Fund Offer) is open for subscription from July 02, 2018 and closes on July 16, 2018. In this article, let’s discuss the objectives, features, plans & options, and suitability of SBI Dual Advantage Fund Series XXIX | A Close Ended Hybrid Scheme.



Objectives of SBI Dual Advantage Fund Series XXIX

The main investment objective of the fund is to generate income by investing in fixed income securities which mature on or before the maturity of the scheme. The secondary objective of the fund is to invest a portion of the corpus in equity & equity related instruments. However, there can be no assurance that the objectives of the Scheme will be realized.



Features of SBI Dual Advantage Fund Series XXIX

1. SBI Dual Advantage Fund Series XXIX is a close-ended Hybrid Scheme.
2. Tenure of the scheme is 1100 days from the date of allotment.
3. Income generation by investing in fixed income securities.
4. Capital appreciation by investing a portion of the scheme corpus in equity & equity related instruments.
5. Avail indexation benefits and thereby potential tax efficient returns as per current tax laws.
6. Redemption on the maturity of the scheme.
7. The scheme would have two plans, viz. Direct Plan & Regular Plan.
8. The NFO period is July 2 – July 16, 2018.
9. Minimum application amount is Rs. 5000/- and in multiples of Rs. 1 thereafter.
10. Units of the scheme will be listed on NSE Ltd.



Plans & Options offered under SBI Dual Advantage Fund Series XXIX

The fund would have two plans.
1. Direct Plan
2. Regular Plan
Both plans of this fund will have two options:
1. Growth
2. Dividend option


Suitability of SBI Dual Advantage Fund Series XXIX

The fund is suitable for
1. Investors with low to medium risk appetite.
2. HNIs (High net worth individuals).
3. An investor who is looking for income as well as capital appreciation.
4. First-time mutual fund investors who would like to enjoy the debt returns with an additional equity upside.


Investment Strategy of SBI Dual Advantage Fund Series XXIX

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%. Investment in AA or above-rated securities.

2. Equity & Equity-related instruments

Invest in a diversified portfolio of Equity & Equity-related instruments between 5% and 17%. Primarily focus on companies that have demonstrated characteristics such as quality management, market leadership, and strong financials. A mix of bottom-up & top-down approach for stock-picking.


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.



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