During times of market volatility, investors are often uncertain whether to put more money into equity or debt. That is where Dynamic Asset Allocation Funds (DAAFs) are helpful. Through the ability to move flexibly from equity to debt and vice versa, depending upon the situation in the market, these funds balance growth along with stability.
The most recent addition to the list is the SBI Dynamic Asset Allocation Active FoF (DAAF), a coming New Fund Offer (NFO) that will endeavor to blend long-term wealth creation and risk management.
In this article, let’s discuss the features, advantages, taxation, and why one should consider investing in this new fund.
A Dynamic Asset Allocation Fund (DAAF) is a mutual fund that actively adjusts its exposure between equity (for growth) and debt (for stability) depending on market conditions.
This approach prevents investors from making emotional choices and achieves balanced returns.
✅ Automatic Asset Allocation – No need for investors to time the market.
✅ Combines Growth + Stability – Equity for wealth creation, debt for safety.
✅ Suitable for Long-Term Investors – and mainly those who are moderate-risk tolerant.
✅ Decreases Behavioral Biases – Avoids panicked buying/selling.
| Asset Class | Allocation Range |
|---|---|
| Equity | 35% – 100% |
| Debt & Others | 0% – 65% |
Expense Ratio: Check latest factsheet.
Exit Load: nil
Taxation:
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This NFO is ideal for:
The NFO is available from 25 August 2025 to 8 September 2025.
The fund’s performance will be measured against the Nifty 50 Hybrid Composite Debt 50:50 TR Index.
No. This is a fund for long-term compounding and risk-adjusted returns.
The fund moves flexibly from equity to debt to minimize exposure in fluctuating markets.
The SBI Dynamic Asset Allocation Active Fund of Funds (FoF) provides an opportunity to investors to invest in equity markets and reduce volatility through exposure to debt. It is a suitable choice for investors who desire medium to longer-term compounding with contained risk.
If you’re looking for a balanced investment option that reduces emotional decision-making, this NFO could be worth considering.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Before investing, you should consult a qualified financial advisor, consider your risk tolerance, investment horizon, and review the latest scheme documents, factsheet and disclosures from SBI Mutual Fund.
📅 Last Updated on: December 1, 2025
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