SBI Mutual Fund unveiled its Balanced Advantage Fund (BAF) today with a unique withdrawal feature – SWP (Automated) or SWP (A). Under this withdrawal plan, the investor can designate a percentage withdrawal from the scheme every month, every quarter or every year.
Currently, most mutual fund houses allow investors to set SWP as a fixed sum, say ₹10,000 per month. However, this fixed withdrawal takes no account of the fund’s actual value and can deplete your investment over time. A percentage withdrawal, on the other hand, will automatically fall when markets trend lower.
The fund will be managed by Dinesh Balachandran and Gaurav Mehta on the equity side and Dinesh Ahuja on the debt side. The New Fund Offer period will run from 12 August to 25 August and is open-ended, you can also transact in the fund thereafter.
