New Delhi, 10 August (H.S.):

SBI Mutual Fund, one of India’s leading asset management companies, on Monday launched its new fund offering (NFO), the SBI Balanced Hybrid Fund. The open-ended hybrid scheme is designed to provide investors with a balanced exposure to both equity and debt instruments.

According to the company, the scheme does not permit arbitrage strategies. The NFO opened for subscription on August 10, 2026, and will remain open until August 24, 2026. The scheme will invest exclusively in equity and debt instruments without employing an arbitrage strategy.

The SBI Balanced Hybrid Fund aims to generate income along with long-term capital appreciation by investing across both equity and fixed-income assets. Under the scheme, 40-60 per cent of the fund’s assets will be invested in equity and equity-related instruments.

The remaining portion will be allocated to debt securities, securitised debt, debt derivatives and money market instruments. The fund will focus on maintaining a balanced portfolio between equity and debt while avoiding arbitrage-based investment strategies.

The scheme may invest in both Indian and overseas securities. It can allocate up to 35 per cent of its net assets to overseas equity, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), overseas exchange-traded funds (ETFs) and debt securities.

The equity portfolio will be managed by Tanmay Desai, while Rajeev Radhakrishnan will oversee the debt portfolio. The scheme’s benchmark is the Nifty 50 Hybrid Composite Debt 50:50 Index.

Investors can subscribe to the NFO with a minimum investment of Rs 5,000. Additional investments can be made in multiples of Rs 1,000, allowing investors to begin with a relatively modest amount.

However, investors should assess the scheme’s risk profile and consider their financial objectives before investing. They should also carefully review the scheme’s offer document and applicable terms and conditions before subscribing to the NFO.

Under the exit-load structure, investors can redeem up to 10 per cent of their total allotted units within one year of allotment without incurring an exit load. If more than 10 per cent of the units are redeemed during this period, an exit load of 1 per cent will apply to the portion exceeding the 10 per cent limit. No exit load will be charged on redemptions made after completion of one year.

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Hindusthan Samachar / Jun Sarkar