SBI Dual Advantage Fund Series XXVIII | A Close Ended Hybrid Scheme

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.

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Also read: ELSS (Equity Linked Savings Scheme)

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SBI Dual Advantage Fund Series XXVIII | A Close Ended Hybrid Scheme