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SBI BAF's assets under management crosses 20,000 crore

SBI Mutual Fund's other hybrid scheme—SBI Equity Hybrid Fund, which is the industry’s largest equity oriented actively managed fund—is approaching close to  ₹50,000 crore in assets under management on the back of increased flows, robust increase in the SIP book and focus on digital onboarding of customers. (Priyanka Parashar/Mint)Premium
SBI Mutual Fund's other hybrid scheme—SBI Equity Hybrid Fund, which is the industry’s largest equity oriented actively managed fund—is approaching close to 50,000 crore in assets under management on the back of increased flows, robust increase in the SIP book and focus on digital onboarding of customers. (Priyanka Parashar/Mint)

  • SBI Mutual Fund said it garnered almost 65% inflows from tier-II and -III retail investors, while the remaining from top eight cities

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SBI Mutual Fund, which netted 14,676 crore in the new fund offer (NFO) of its Balanced Advantage Fund (BAF) in August, has seen assets in the fund swell to 20,000 crore, a release issued by the fund house showed. The fund house garnered almost 65% inflows from tier-II and -III retail investors, while the remaining from top eight cities, it added. The fund house’s other hybrid scheme—SBI Equity Hybrid Fund, which is the industry’s largest equity oriented actively managed fund—is approaching close to 50,000 crore in assets under management (AUM) on the back of increased flows, robust increase in the SIP book and focus on digital onboarding of customers. The SBI Debt Hybrid Fund is also the largest fund in its category. SBI Mutual Fund manages an average AUM of 5.78 trillion as on 30 September 2021.

The BAF is currently about 29% in equity (unhedged), 26% in debt and the balance 45% in arbitrage according to data published by Value Research. Arbitrage allows a fund house to reduce equity risk, while keeping the minimum 65% corpus in stocks that is required for equity taxation on capital gains. The fund can also allocate up to 20% in international stocks.

SBI BAF raised the highest-ever AUM for an NFO in the mutual fund industry in its recently concluded NFO. As on date, it has crossed 20,000 crore AUM in the fund on the back of consistent fresh inflows. Through this NFO, the fund house has reached out to 93% pin codes across the country with close to 400,000 applications across India and added 100,000 new PANs to its family of investors. The fund house believes that hybrid funds are best suited both for first-time and risk-averse investors in the current scenario as investors often miss doing proper asset allocation during a strong bull run in capital markets. Hybrid funds have a mix of different asset classes such as equity, debt, and gold; to provide better risk-adjusted returns depending on the need and risk profile.

SBI Funds Management is a joint venture between State Bank of India, India’s largest bank, and Amundi, Europe’s largest asset manager and one of the world’s leading asset management companies. SBIFM also offers discretionary, non-discretionary and advisory portfolio management services to various high net-worth individuals, corporates, and institutional investors through diversified solution-based offerings and focus on financial literacy.

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