SBI BALANCED ADVANTAGE FUND v/s FIXED DEPOSIT

Article by?Vaishali Gupta?Founder of Desire Achiever Investment Services backed by NJ Wealth & LIC.

?Date:?13th Aug 2021

Email:?[email protected]

Website:?https://linktr.ee/DESIREACHIEVER

Have you ever wondered what is the best replacement for a fixed deposit? If you are looking for it, this article definitely helps you to choose between Fixed Deposit and SBI Balanced Advantage Fund.

The most awaiting upcoming NFO of SBI BAF is announced having NFO Period 12th August?to 24th August 2021!

As mentioned above you noticed that there is SBI Balanced Advantage Fund recently announced. The following details will give you a clear idea about SBI Balanced Advantage Fund(BAF).

?Why choose SBI BAF??

1. ?The Fund which suits for all-weather Markets.
2. This Fund can be a solution for investors to get the right Asset Mix.
3. It consists of Optimal Asset Allocation with a perfect mix of Long Equity, Arbitrage and Debt.
4. Having Lower Volatility by dynamically managing Debt & Arbitrage portions to reduce volatility in unfavourable market conditions.
5. It has Tax Efficiency through equity taxation benefits.

Now that you got an idea why you should choose SBI BAF let us look at some of the Key Roles that various Asset plays in SBI BAF

?Key Role -

?1) Long Equity for wealth creation.

?2) Arbitrage to limit downside risk.

?3) Fixed Income to provide stability.

?The above figure consists of Systematic Withdrawal?Plans in BAF Calculation which gives the overview of Bank FD and Balanced Advantage Fund.

Before we proceed to have a look at the video below :

LINK:?https://linktr.ee/DESIREACHIEVER

NOW,?It is important while doing investment you should have clear approach and strategy for gaining and to get better profit in return. Let us look at the strategy for SBI BAF.

?Investment Strategy of SBI BAF -

?1) Asset Allocation?through sentiment indicator, Valuation & Earnings drivers.

?2) Strategy TILT?in terms of market cap allocation, preferred sector & style skewness I.e Value / Growth

?3) Stock Selection?through high conviction ideas of analysts team & Fund Manager & Fixed Income allocation will be into High-quality credit & sovereign to maintain liquidity and Alpha generation through Duration management across the yield curve

?The Exit Load?is 1% if redeemed before 1 year with an option to redeem up to 10% of investment before 1 year without load.

Summary –

SBI Balanced Advantage Fund has been launched at the time as volatility across asset classes has set in and is likely to remain a mainstay in future as well. As we understand, markets at all-time highs tend to become volatile and investors may not be able to digest the volatility. Hence, SBI BAF offers the very opportunity to ride the equity market wave by limiting the portfolio volatility through diversification across equity and debt instruments for investors. Hence, SBI BAF?is an ideal investment solution to manage Market uncertainty and thereby generate better risk-adjusted returns.

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LinkedIn Vaishali Gupta: https://www.dhirubhai.net/in/vaishali-gupta-a01ba3153

Email Address:?[email protected]

Website:?https://linktr.ee/DESIREACHIEVER

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Credit goes to Pranav M Bhale: https://www.dhirubhai.net/in/pranav-bhale-9485a9175