SBI Balanced Fund

SBI Balanced Fund is managed by R Shrinivasan and Dinesh Ahuja. Earlier known as Magnum open-end, the scheme seeks capital appreciation from a balanced portfolio of equity and debt securities. If you have already invested, exit now to invest in a better performing fund. New investors can safely skip this fund.

Where does SBI Balanced Fund invest your money?

SBI Balanced Fund is a balanced fund which invests your money in both equity securities and debt securities. It has more than 73% exposure to equity and 25% exposure to debt. Its equity portion has mid cap bias which means most of your money will be invested in stocks of medium sized and small sized companies. SBI Balanced fund has 38% to large sized companies, 28.33% exposure to mid sized companies and 33.09% exposure to small sized companies.

Its debt portion has allocation in corporate debentures and government securities. It currently holds close to 1% of its assets in cash and equivalents such as T-bills, banker’s acceptance and money market instruments.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not suitable for what?
  • Long term needs
  • Creation of wealth
How has SBI Balanced Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Dec 1995, your value of investments would sadly be around Rs 4.89 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.30 lakhs. The performance has not been similar to other funds in this category. 

Assume you had invested Rs 10,000 every month in SBI Balanced Fund through SIP for the past 5 years today you would just have around Rs 7.81 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of SBI Balanced Fund is 2.55%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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