SBI Mutual Fund has gathered a corpus of ₹12,000 crore from the new fund offer (NFO) ground of its Balanced Advantage Fund, a source associated with the activity told Mint, a media outlet as an anonymous reporter. The NFO programme commenced on 12 August and ended today.
Since the fund is open and liberalised for all, investors can also subscribe to the fund as per their convenience. The massive collection surpassed the last record by gaining ₹10,000 crore gathered by ICICI Prudential Asset Management Company in relation to its Flexi-cap fund NFO.
A balanced advantage fund has the potential to rectify its allocation to equity and debt by ascertaining the market status. It is probable to amplify the appeal of the fund for investors through market valuations.
According to this feature, investors can choose to withdraw 0.5% of the invested amount per month, 3% for every six months or 6% per annum. But, if the fund couldn’t deliver returns above the threshold rates, the withdrawals would come out of the investors capital amount.
“The NFO got more than 3 lakh applications from around the country. However the ticket size was also quite high suggesting that this may not be as mass-market as might be expected,” the person told Mint.
