SBI MF launches Dynamic Asset Allocation Active FoF; NFO opens August 25

SBI Mutual Fund, India’s largest fund house, on Thursday launched SBI Dynamic Asset Allocation Active Fund of Fund (FoF), an open-ended scheme designed to give investors access to a diversified mix of actively managed equity and debt funds under a single umbrella.

 

The New Fund Offer (NFO) opens on August 25, 2025, and will remain open until September 8, 2025.

 

What the Fund Offers

 

The scheme aims to generate long-term capital appreciation by dynamically shifting allocations between equity and debt-oriented mutual fund schemes, based on market conditions. This flexibility is meant to help investors balance risk and return, especially in volatile markets.

 

• Equity allocation: 35% to 65%
• Debt allocation: 0% to 65%
• Money market instruments: up to 5%

 

The fund will primarily invest in units of SBI Mutual Fund’s existing schemes, while also having the flexibility to invest in other mutual fund schemes.

 

Fund Type:

 

Open-ended Fund of Fund (FoF) scheme

 

Invests in units of actively managed equity-oriented and debt-oriented mutual fund schemes

 

Objective:

 

Long-term capital appreciation by dynamically allocating between equity and debt funds depending on market conditions

 

NFO Dates:

 

Opens: August 25, 2025

 

Closes: September 8, 2025

 

Asset Allocation Strategy:

 

35%–65%: Actively managed equity & equity-oriented schemes

 

0%–65%: Actively managed debt & debt-oriented schemes

 

Up to 5%: Money market instruments

 

Minimum Investment:

 

Initial: ₹5,000 (and in multiples of Re.1 thereafter)

 

Additional Purchase: ₹1,000 (and in multiples of Re.1 thereafter)

 

Available via SIP (daily, weekly, monthly, quarterly, semi-annual, annual)

 

Fund Managers:

 

Equity Portion: Ms. Nidhi Chawla

 

Debt Portion: Mr. Ardhendu Bhattacharya

 

Benchmark:

 

NIFTY 50 Hybrid Composite Debt 65:35 Index (TRI)

 

Risk Profile:

 

Classified as “Moderately High Risk”

 

Suitable for investors with medium to long-term horizon seeking diversification

 

Other Key Points:

 

• Investors will bear expenses of this scheme plus underlying schemes.
• The fund aims to provide a “one-fund solution” for asset allocation, balancing risk and return.
• Promoted as convenient for investors looking for dynamic allocation in changing market conditions.

 

Who Should Consider This Fund?

 

• The scheme is positioned as a convenient one-stop solution for investors who:
• Want diversification without selecting multiple funds individually.
• Prefer a professional, dynamic asset allocation strategy that shifts between equity and debt.
• Seek to manage risk while staying invested for long-term wealth creation.

 

"By adjusting allocations across asset classes, based on evolving market conditions, it aims to effectively provide diversification, manage risk and opportunities for long-term wealth creation," said Nand Kishore, MD & CEO, SBI Funds Management Limited.

 

 The SBI Dynamic Asset Allocation Active FoF seeks to adapt to these evolving market conditions, offering a diversified, all-in-one solution by investing in a mix of existing actively managed equity and debt-oriented funds," said D P Singh, Deputy MD & Joint CEO, SBI Funds Management.