A monthly Systematic Investment Plan (SIP) of ₹10,000 in the SBI Multi Asset Allocation Fund since its inception in May 2018 has grown to ₹12.92 lakh by October 30, 2024. This translates to a total investment of ₹7.8 lakh delivering a compounded annual growth rate (CAGR) of 15.34%, according to the fund house.

The fund has consistently outperformed its benchmark, which recorded a CAGR of 13.43%, and the BSE Sensex TRI, which delivered a CAGR of 16.61% over the same period.

The SBI Multi Asset Allocation Fund was launched on May 16, 2018, and currently manages assets worth ₹5,452.75 crore.

It follows a multi-asset investment approach, blending equity, debt, and commodities like gold and silver.
As per its mandate, the fund maintains at least 10% of its portfolio in three or more asset classes. Equity investments span across large, mid, and small-cap companies, while debt is dynamically managed. Exposure to gold and silver is primarily through SBI’s Gold and Silver ETFs.

In recent months, the fund has held approximately 35-38% of its portfolio in equities, with allocations to non-convertible debentures and government securities making up significant portions of its debt holdings.

The allocation to gold and silver has remained steady, representing around 10.79% and 6.67%, respectively, as of October 2024.

The fund’s SIP performance has been notable, with returns of 17.91% over one year, 19.07% over three years, and 16.64% over five years. On a lumpsum basis, an initial investment of ₹10,000 at inception would have grown to ₹21,558, reflecting a CAGR of 12.61%.

The fund is managed by a team of experienced professionals. Dinesh Balachandran oversees the equity portion, Mansi Sajeja manages debt, Vandana Soni handles commodities, and Pradeep Kesavan focuses on overseas investments. Together, they implement a rule-based asset allocation strategy, adjusting for market dynamics and aiming to normalize any biases.

With its balanced approach, the SBI Multi Asset Allocation Fund has provided consistent returns by tapping into multiple asset classes. While it offers diversification benefits, investors should consult financial advisors to assess its suitability based on individual risk profiles.