SBI Mutual Fund today announced the launch of SBI Dual Advantage Fund - Series II, a 36-month close-ended debt-oriented hybrid fund. The scheme under a normal circumstances, will invest 5% to 25% of the assets in Equity & Equity-related instruments and 50% to 95% in Debt and 0% - 25% in Money Market instruments. Under this scheme, investor can also avail indexation benefits and thereby potential tax efficient returns as per current tax law.
The NFO period of SBI Dual Advantage Fund Series II starts from April 22 to May 5, 2014.
The investment strategy of SBI Dual Advantage Fund Series II is to invest in the entire range of debt instruments with AA and above rated securities, that are maturing on or before the maturity of the scheme, and adopt a mix of bottom-up and top-down approach for actively managing the residual Equity portion to generate overall potential returns. The scheme will primarily focus on companies that have demonstrated characteristics such as market leadership, strong financials and quality management.
Speaking on the occasion, Dinesh Khara, MD & CEO, SBI Mutual Fund said, ''We at SBI Funds Management are happy to introduce a low volatility and tax efficient investment solution in SBI Dual Advantage Fund Series II. HNIs and Investors with medium risk profile as also first time mutual fund investors would benefit from a three pronged features - quality debt portfolio, growth potential that equity upside would provide and tax efficient returns.''