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Mahindra Manulife Balanced Advantage Yojana NFO Review


Mahindra Manulife Investment Management has launched an open-ended dynamic asset allocation fund Balanced Advantage Scheme, The scheme is suitable for investors who seek capital appreciation while generating income over the medium to long term by investing in a dynamically managed portfolio of equity and equity related instruments and debt and money market instruments. The fund will aim to optimize equity and debt efficiencies in the short to medium term.

subscription of the scheme is opens till Dec 23rd, 2021. The scheme will reopen for continuous sale and repurchase from 3rd January, 2022.


INVESTMENT OBJECTIVE

The investment objective of the Scheme is to provide capital appreciation and generate income through a dynamic mix of equity, debt and money market instruments. The Scheme seeks to reduce the volatility by diversifying the assets across equity, debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved.


INVESTMENT STRATEGIES?

The investment strategy of the Scheme would focus on seeking active asset allocation between equity and fixed income to manage the market risk. The Scheme seeks to generate capital appreciation by investing in equity and equity related securities and generate income by investing in debt and money market instruments. The Scheme aims to dynamically manage the debt and equity allocations in the portfolio. The investment strategy would thus focus on a dual approach: a top down approach seeking an active asset allocation between equity and debt and a bottom up process for construction of portfolio specific securities.


The AMC will follow an internal rule based approach to follow the dynamic asset allocation for the Scheme. The approach seeks to build equity and debt asset allocation decisions based on prevailing market and economic conditions (including factors like equity valuations, momentum, interest rate movements etc.). The asset allocation decisions will be reviewed on an ongoing basis and would be linked to the movements in the market variables. The Fund Manager will deploy a combination of strategies to achieve the investment objective of the Scheme.


BENCHMARK

The Scheme performance would be benchmarked against the Nifty 50 Hybrid Composite Debt 50: 50 Index TRI.

The Trustee may change the benchmark in future if a benchmark better suited to the investment objective of the Scheme is available.


ALLOCATE ITS ASSETS?

Instruments

Minimum

Maximum

Risk Profile

Equity & Equity related instruments

0

100

High

Debt and Money Market Securities (including TREPS (Tri-Party Repo), Reverse Repo)

0

100

Low to Medium

NFO Details

Scheme Opens

9th Dec 2021

Scheme closes

23rd Dec 2021

Scheme reopens for continuous purchase/sale

3rd Jan 2022

Minimum Lumpsum

Rs 1000

Minimum SIP

Rs 500 for 6 months

NAV of the fund during NFO period

Rs 10

Entry Load

Nill

Exit Load

10% of the units allotted shall be redeemed without any exit load, on or before completion of 3 months from the date of allotment of Units. Any redemption in excess of the above limit shall be subject to the following exit load: - An Exit Load of 0.5% is payable if Units are redeemed / switched-out on or before completion of 3 months from the date of allotment of Units; - Nil - If Units are redeemed / switched-out after completion of 3 months from the date of allotment of Units.

Benchmark

Nifty 50 Hybrid Composite Debt 50: 50 Index TRI.

Fund Managers

Equity - Mr. Manish Lodha, Ms. Fatema Pacha, Debt - Mr. Rahul Pal


Existing Scheme Performance

Here is the performance of some existing Balanced Advantage funds. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.

Scheme

Launch

1Yr Ret ( % )

3 Yr Ret ( % )

5 Yr Ret ( % )

Aug-09

21.55

17.10

14.37

Nov-18

17.97

18.22

--

Dec-17

11.52

14.25

--

Oct-14

17.56

13.10

​10.75

Dec-06

16.96

13.68

11.52

Apr-00

16.25

13.30

10.59

Aug-18

15.19

13.75

--

Feb-14

10.66

10.95

8.94