Introducing the SBI Balanced Advantage Fund
Introducing one of the top performers in the BAF category, the SBI Balanced Advantage Fund is a versatile scheme. It was launched on 1st September 2021 and currently manages a strong AUM (Assets under management) at Rs.34,015 crores (As of 31.04.25).
Today, this analysis will cover the importance of SBI Balanced Advantage Fund NAV (net asset value). This will help you analyse its performance and will be your guiding light in the complex world of finance.
Now, without any further delays, let us start by covering the simple concept of this balanced advantage fund.
SBI Balanced Advantage Fund: Understanding the Concept
The following points will help you understand the framework of this BAF:
Understanding NAV: Fundamentally, NAV provides a concrete picture of a mutual funds value by covering the asset value per unit. This section acts as a compass, pointing the way across the imagined landscape of net asset value (NAV), in which each unit represents a portion of the funds market worth and the figure dynamic fluctuations in reaction to the movements of the market.
Role of NAV: The net asset value (NAV) of a mutual fund is indeed like a value tag. It represents the per-unit market value of all the securities held by the fund, minus any liabilities. Investors can use the NAV as an indicator of the fund’s performance and, when tracked over time, it provides insights into how the fund has been faring.
Calculating NAV: The NAV is calculated by dividing the total value of the funds assets by the number of outstanding units. So, much like a price tag reflects the value of an individual item, the NAV reflects the value of each unit in a mutual fund.
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Importance of NAV in SBI Balanced Advantage Fund
An essential statistic for investors to assess the performance of mutual funds and make well-informed selections is the Net Asset Value (NAV). Now let’s examine the meaning of NAV:
1. Performance Evaluation: NAV is comparable to the price label that indicates the value of each mutual fund share. When NAV rises, the fund is performing well and if it drops, it may face challenges. Monitoring NAV helps gauge the funds performance; if it is up is good, down may need attention.
2. Buying & Selling Decisions: Investors use NAV to decide when to buy or sell mutual fund units. Buying at a lower NAV and selling at a higher NAV can optimize returns. However, remember, NAV is not the only factor to consider; the fund’s performance and your investment goals matter too.
3. Benchmark Comparisons: You can compare NAV with the fund’s benchmark index to see how well the fund is doing compared to the overall market. Certainly, consistently outperforming the benchmark is generally considered a good sign for the fund’s performance.
4. Change in asset allocation process: Observing the shifts in value of assets helps you understand what choices the fund manager is making about where to invest the money. This way, you can adjust your own investment strategy to go along with theirs.
5. Portfolio Valuation: It reflects the total value of all the things the fund has invested. That gives investors a clear view of how much their investments are worth and shows how their holdings contribute to the overall value of the fund.
6. Investment Planning: The net asset value of a particular fund helps in determining the objectives of the investment plan.
Who Manages the SBI Balanced Advantage Fund?
Fund Manager’s profile: Dinesh Balachandran (equity manager)
A seasoned professional in the finance industry, Dinesh began his remarkable career in 2001 with Fidelity in Boston, USA. Currently serving as an equity fund manager. Mr. Balachandran brings a wealth of experience and knowledge to the table. His role involves critical decision making, portfolio management and leveraging his insights to drive the funds performance.
As the Head of Research, he played an important role in steering SBI Mutual Fund’s research analyst team, contributing to the funds overall success.
What are the Risks of Investing in SBI Balanced Advantage Fund?
Here are some risk factors that you should be concerned about before investing in the SBI Balanced Advantage Fund regular growth:
1. Market Risk: It is important to understand that when there is any changes in the market trends. It affects the performance of a fund. So it makes it crucial to properly study and observe these changes and adapt according to them foe better results.
2. Liquidity Risk: It is related to buying and selling of your investments. Some funds are easy and provide flexibility at the time of redemption and others can be little bit difficult to sell.
3. Operational Risk: Due to the nature of mutual fund is unpredictable it makes the job of the fund manager that much more difficult to analyze them and always predict correct decisions.
To Conclude SBI Balanced Advantage Fund Review
To sum it up, looking at the above article helps you understand how well the fund is doing. It is like checking the value of everything the fund has invested in. This information is useful for investors to figure out if the fund is healthy and how it is performing in the market.
Additionally, this fund also provides its investors with the Best SIP (Systematic Investment Plan), which gives them an option to start investing without leaving the comfort of their homes in easy and quick process.
While the fund can be affected by market ups and downs, the smart strategy it follows, led by experienced fund managers, helps it adapt to changes. So, keeping an eye on NAV gives you the information you need to make smart investment decisions that match your goals and risk tolerance.
