SBI Mutual Fund, the country's largest fund house, has mopped up industry's highest-ever collection of over ₹13,000 crore through its new fund offer of Balance Advantage Fund.

The fund house has attracted investment from over 4 lakh investors across the country aided by its robust online reach.

Overtakes ICICI FlexiCap

SBI Mutual Fund has managed to break ICICI Mutual Fund’s record of collecting ₹10,000 crore in July for its flexi cap fund. Aditya Birla Sun Life Multi-Cap Fund in May managed to attract investment of ₹1,900 crore from over 88,000 applications.

Of late, NFOs of MFs have managed to attract good investment from investors. The bull run in equity market and enhanced digital reach of the industry has helped MF houses to reach the remotest corner of the country to attract investment.

With the competing assets such as gold and real estate performing badly in last few months, investors have taken interest in equity investment, said R Sukumar, a MF distributor and financial advisor.

The SBI new fund offer, which opened on August 12, closed on Wednesday.

Regular cash flow

In one of its kind move, SBI Balanced Advantage Fund has a Systematic Withdrawal where an investor can mention the amount he/she wants to withdraw at specific intervals. The fund house would redeem units equivalent to the value of money sought by the investors and credit it in their bank account.

The embedded feature is a great facilitator for availing tax efficient periodic payouts on the backdrop of dividend option becoming unattractive due to prevailing tax laws, he added. The facility has also attracted investment from high net worth investors and senior citizens who are looking for regular cash flow, he said. The scheme invests in equity and equity related instruments, debt securities and money market instruments, Real Estate Investment Trusts and Infrastructure Investment Trusts.

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