InvestorQ : How did the SBI recent NFO gets such tremendous response. Is it because of the support of SBI banking network?
Lavanya Subramanian made post

How did the SBI recent NFO gets such tremendous response. Is it because of the support of SBI banking network?

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Anamika Sodhani answered.
4 months ago
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Of course, the network and the bancassurance model of SBI MF played a big role in the fund collecting Rs.13,000 crore at the NFO. It is now the largest such NFO in Indian mutual fund history. If you look at the AUM leaders in India, the importance of the bancassurance model is quite clear. For example, if you look at the top-7 players in India by Mutual Fund AUM, 5 of these players are affiliated to banks and leveraging the bancassurance model.

In the specific case of SBI MF Balanced Advantage Fund, out of the total estimated inflows of Rs.13,000 crore, it is estimated that close to 45% came through the branches of SBI. Out of the 22,000 branches of SBI, across India, it is also estimated that about 14,000 branches contributed to the Balanced Advantage Fund NFO. That is why the mutual fund AUM game is getting concentrated bank affiliated funds.

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