SBI Mutual Fund has opened the New Fund Offer (NFO) for its new SBI Balanced Hybrid Fund, which is available for subscription until August 24, 2026. The scheme seeks to provide long-term capital appreciation and income through a mix of equity and debt investments. The minimum initial investment required is ₹5,000.
SBI Mutual Fund has opened the New Fund Offer (NFO) for its latest product, the SBI Balanced Hybrid Fund. The subscription window for this open-ended scheme began on August 10, 2026, and is scheduled to close on August 24, 2026. This fund is designed to offer a mix of growth and income by investing in a combination of equity and debt assets.
Investment Strategy and Asset Allocation
The fund follows a hybrid investment approach, which is intended to provide diversification for investors. The scheme will invest between 40% and 60% of its total assets in equity and equity-related instruments, while simultaneously allocating 40% to 60% to debt securities and money market instruments. This strategy aims to combine the potential for capital growth from the stock market with the relatively more stable income generation typically associated with debt instruments.
Additionally, the fund has the flexibility to include foreign securities, such as international equities, American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), and overseas exchange-traded funds (ETFs). These international investments can make up to 35% of the total net assets, subject to current regulatory guidelines. The fund's performance will be measured against the Nifty 50 Hybrid Composite Debt 50:50 Index.
Risk Profile and Liquidity Terms
Investors looking at this scheme should be aware of its risk classification. Despite the 'balanced' label, the fund is categorized with a 'Very High' risk rating. This is primarily due to the significant portion of the portfolio allocated to equity markets, which are subject to high volatility and market fluctuations. There is no guarantee that the fund will meet its investment objectives or deliver specific returns, as performance is directly tied to the performance of the underlying assets.
Regarding liquidity, the fund includes an exit load provision. If an investor redeems more than 10% of their total units within one year of the allotment date, a 1% exit load charge will be applied. Redemptions of up to 10% of the units within the first year are free of this charge. After the one-year period, no exit load is applicable. The scheme is managed by Tanmaya Desai, who oversees the equity component, and Rajeev Radhakrishnan, who manages the fixed income and debt portion of the portfolio.