Feb 7: SBI Mutual Fund has proposed to launch a Dual Advantage Fund, a close ended hybrid scheme with the objective of generating income by investing in a portfolio of fixed income securities maturing on or before the maturity of the scheme. The secondary objective is to generate capital appreciation by investing a portion of the scheme corpus in Equity and equity related instruments.
For schemes with a maturity greater than 12 months and less than or equal to 24 months, the benchmark would be customized benchmark of 10% of Nifty and 90% Crisil Short Term Bond Fund Index. For schemes with maturity greater than 24 months-Crisil MIP Blended Fund Index would be applicable. There will be no entry or exit load.
The portfolio allocation would be 65-95% in debt and debt related instruments, 0-15% in money market instruments and 5-20% in equity and equity related instruments including derivatives for schemes with maturity greater than 12 months and less than or equal to 24 months.