Want to start Rs 250 JanNivesh SIP? Know where your money is invested

JanNivesh SIP and SBI Balanced Advantage Fund

 

SBI Mutual Fund has turned Sebi’s dream of a micro-investment scheme into reality by launching JanNivesh SIP. Investors can start investing with only Rs 250. This scheme, launched in collaboration with SBI, aims to bring small and first-time investors from villages, towns, and cities into the mutual fund market. Sebi chairperson Madhabi Puri Buch described the scheme as "like a dream come true." If you plan to start JanNivesh SIP, it is important to know where the scheme will invest your money, what returns you might expect, and how much risk it involves.

 

 

Where will JanNivesh SIP invest investors' money?

 

The money collected through JanNivesh SIP will be invested by SBI Mutual Fund in the SBI Balanced Advantage Fund. This fund was launched on August 31, 2021. It is an open-ended dynamic asset allocation fund that balances investments between equity and debt. This fund can be a good option for investors looking to grow their capital in the long term through a balanced mix of equity and debt.

 

SBI Balanced Advantage Fund: 3 years, 13%+ returns, beats benchmark

 

According to data from the Association of Mutual Funds in India (Amfi), the SBI Balanced Advantage Fund has given 13.40 per cent returns to investors over the past three years. In the last one year, the scheme has provided 7.40 per cent returns. Since its inception, the scheme has delivered an annual return of 12.24 per cent.

 

In terms of performance, this scheme has outperformed its benchmark. The Nifty 50 Hybrid Composite Debt 50:50 Index has given a return of 9 per cent.

 

Based on three-year returns, this fund is ranked second in its category. The HDFC Balanced Advantage Fund holds the top position, delivering 20.03 per cent returns over the last three years.

 

SBI Balanced Advantage Fund: Key details

 

The SBI Balanced Advantage Fund is an open-ended dynamic asset allocation fund. Investors can start investing with a minimum of Rs 5,000 and add more in multiples of Rs 1,000.

 

The benchmark for this scheme is the Nifty 50 Hybrid Composite Debt 50:50 Index. As of January 31, 2025, the fund's assets under management (AUM) stood at Rs 33,305.48 crore.

 

This fund carries a high risk. The expense ratio of this scheme is 0.69 per cent. There is no lock-in period, but investors should check the exit load rules before withdrawing their investment.

 

Exit load rules

 

• No charge (NIL): If you redeem or switch up to 10 per cent of the purchased or switched units within one year from the allocation date.
• 1 per cent charge: If you redeem or switch more than 10 per cent of the units within one year, a 1 per cent exit load will be applied.
• No charge (NIL): If you redeem or switch after one year from the allocation date.

Fund asset allocation

 

• Equity: 42.51 per cent
• Debt: 25.82 per cent
• Real estate: 5.04 per cent
• Cash & cash equivalents: 26.63 per cent

Who are the fund managers?   

The fund is managed by Dinesh Balachandran, Mansi Sajeja, Rajeev Radhakrishnan, and Pradeep Kesavan. Dinesh Balachandran manages the equity portion of the fund. Mansi Sajeja handles the debt portion. All four fund managers have around 20 years of experience in the industry.

 

SBI Balanced Advantage Fund: Strong portfolio with diversified investments

 

The SBI Balanced Advantage Fund has a well-diversified portfolio spread across multiple sectors. As of January 31, 2025, its largest investment is in Government of India securities, which account for 9.87 per cent of the total portfolio.

 

Among corporate investments, HDFC Bank Limited holds a 4.94 per cent share, followed by Reliance Industries Limited (4.59 per cent) and Bharti Airtel Limited (3.32 per cent). Other key investments include:

 

• GAIL (India) Limited (2.78 per cent)
• National Highway Infra Trust (2.48 per cent)
• Axis Bank Limited (2.44 per cent)
• HCL Technologies Limited (2.34 per cent)
• Larsen & Toubro Limited (2.15 per cent)
• Mahindra & Mahindra Limited (2.14 per cent)
• Tech Mahindra Limited (2.11 per cent)

The fund’s portfolio maintains a balanced mix of government bonds, banking, infrastructure, telecom, technology, and industrial sectors, highlighting its dynamic asset allocation strategy. 

Source- SBI MF Website

 

SBI Balanced Advantage Fund: What is the investment strategy?

 

According to the fund house, this scheme is designed to provide long-term capital appreciation and income by dynamically investing in equity and debt. The scheme will invest in a well-diversified portfolio of equity and equity-related instruments.

 

While selecting stocks, the fund managers will focus on factors such as the fundamental strength of the business, management quality, financial health of the company, and its market leadership. This scheme has no restrictions on sector or market capitalisation and will invest across different sectors.

 

Additionally, the scheme will also invest in debt and money market instruments, considering factors like current interest rates, the yield curve, yield spreads, and liquidity of different instruments. The scheme may also invest in derivative instruments such as futures & options (F&O), stock/index futures, interest rate swaps, and forward rate agreements.

 

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(Disclaimer: The details of the mutual fund scheme are provided for informational purposes only. This is not investment advice. Investing in mutual funds is subject to market risks. Please consult your financial advisor before making any investment decisions.)