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 | |