SBI Mutual Fund, in collaboration with the State Bank of India, has launched JanNivesh SIP, a micro-investment scheme designed to bring mutual funds within reach of novice investors and modest savers in rural, semi-urban, and urban areas. By reducing initial investment requirements, the initiative aims to promote financial inclusion and foster a culture of regular investing.
The JanNivesh SIP will be investing in the SBI Balanced Advantage Fund. Launched in 2021, the SBI Balanced Advantage Fund is an open-ended dynamic asset allocation fund that diversifies its investments between equity and debt. It is suited for investors looking for long-term capital appreciation through a balanced mix of equity and debt investments.
SBI Balanced Advantage Fund
The SBI Balanced Advantage Fund is a mixed mutual fund that seeks to achieve both capital appreciation and income generation through active balancing of its portfolio between equity and debt instruments. Utilizing a dynamic asset allocation strategy, the fund is able to take advantage of market opportunities while mitigating potential downside risks.
As of February 18, 2025, the total assets under management (AUM) of the SBI Balanced Advantage Fund stand at 32,953.27 crore. The scheme’s benchmarks include the Nifty 50 Hybrid Composite Debt 50:50 Index and the BSE Sensex TRI.
SBI Balanced Advantage Fund’s top five holdings consist of Government of India bonds (9.87%), HDC Bank (4.92%), Reliance Industries (4.59%), Bharti Airtel (3.32A%), and GAIL (2.78%). According to the fund’s most recent factsheet, 54% of its assets are allocated to large-cap stocks, 8.4% to mid-cap stocks, and 3.22% to small-cap stocks. Additionally, approximately 10.77% of the fund’s assets are invested in government securities, 2.57% in real estate investment trust, 5.4% in infrastructure investment trusts, and 7.92% in AAA and equivalent-rated bonds.
The SBI Balanced Advantage Fund – Regular Plan allocates its assets across a combination of equity and fixed-income securities. The allocation between the two asset classes is actively adjusted based on the fund manager’s market outlook, allowing for potential variations in the proportions.
According to data from the Association of Mutual Funds in India (AMFI), over the past three years, the direct plan of this scheme has yielded a return of 13.39%, outperforming the regular plan which has delivered returns of 12.32%. In the one-year period, the direct plan has generated a return of 7.46% compared to the 6.49% return of the regular plan.
The data indicates that the scheme has consistently outperformed its benchmarks since its inception. An initial investment of Rs 10,000 in this fund three years ago could now be worth Rs 14,315.
Balance Advantage Funds
Balance Advantage Funds, also known as Dynamic Asset Allocation Funds, invest in a combination of stocks and FD-like instruments. This allocation is adjusted regularly to adapt to changing market conditions, aiming to provide investors with optimal returns while minimizing risks. Over the last 5 years, Dynamic Asset Allocation Funds have delivered an average annual return of 12.57%. The 3-year and 10-year annualized returns stand at 11.8% and 10.16% respectively.
Top 5 Balance Advantage Funds
HDFC Balanced Advantage Fund
Fund Size: Rs 94,251 Crs
Return (p.a): +21.59%
Axis Balanced Advantage Fund
Fund Size: Rs 2,652 Crs
Return (p.a): +14.27%
Baroda BNP Paribas Balanced Advantage Fund
Fund Size: Rs 4,078 Crs
Return (p.a): +13.80%
Invesco India Balanced Advantage Fund
Fund Size: Rs 935 Crs
Return (p.a): +13.54%
ICICI Prudential Balanced Advantage Fund
Fund Size: Rs 60,347 Crs
Return (p.a): +13.53%