InvestorQ : Would you recommend buying into the SBI Balanced Advantage fund after it commences?
Lavanya Subramanian made post

Would you recommend buying into the SBI Balanced Advantage fund after it commences?

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Anamika Sodhani answered.
4 months ago
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At the outset it is a good story and brings some key advantages. For example, the fund is an auto allocation tweaker. It cuts equity holdings when indices move high and adds equity positions when index becomes undervalued. Thus, the fund remains fully invested close to the top and keeps cash available at the bottom. The fund also offers a fixed withdrawal formula to take out 0.5% a month; 3% in 6 months or 6% in a year.

While it is a well designed product and timely, investors must ensure to check with their financial advisors and confirm that the fund aligns with their long term goals. Also, not all NFOs are great since these NFOs are launched in peak demand period. Use discretion before buying into this fund.

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