NFO Open for Subscription: Tata Balanced Advantage Fund
Tata Mutual Fund has recently launched Tata Balanced Advantage Fund on January 9, 2019. It is an open-ended dynamic asset allocation fund whose investment objective is to provide capital growth and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities, and pure equity investments.
The relevant dates for this NFO are given below:
| Issue Opening Date | Wednesday, 09-Jan-2019 |
| Issue Closing Date | Wednesday, 23-Jan-2019 |
| Allotment Date | Monday, 28-Jan-2019 |
| Reopens for continuous sale & repurchase | Friday, 01-Feb-2019 |
Why Invest in Balanced Advantage Fund?
Balanced Advantage Fund is that fund whose asset allocation keeps on changing depending on the strategy that the fund manager is willing to follow for that particular scheme. Investors, thus don’t have to worry about timing the market and getting the allocation right as the fund itself does that for them in the right manner. Such funds invest in equities, arbitrage equities, and debt instruments.
Invest in the Best Mutual Funds
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
Key Points About Balanced Advantage Funds:
- Actively managed equity management.
- Closely monitors that market behavior and shifts the allocation between equity and debt.
- Ideal for investors who are seeking an investment opportunity in a valuation aware equity-oriented scheme.
- Offer careful risk management.
- Schemes endeavor to capture market trends and manage a judicious mix of equities and debt, making sure the fund provides equity taxation benefit.
Investment Strategies of Tata Balanced Advantage Fund
It stands true to its tag-line which is “The market might be topsy-turvy. Your portfolio need not be.” Therefore, it follows the investment strategy which is aimed to meet the primary investment objective of the scheme. The fund managers will invest in opportunities available across the market cap. The companies who have sound professional management, track record, growth prospectus, industry scenario, and liquidity of the securities will be a part of the fund’s investment portfolio. The fund will use derivatives to hedge the downside risk of the portfolio. These derivatives may also be used for generating returns through arbitrage opportunities. This may make the scheme forgo some upside but shall protect the downside.
The fund managers may take a call on the hedge ratio after weighing factors including but not limited to, the following:
1) The earnings growth of the stock
2) The quantitative valuation parameters in the historical as well global context
- P/E Ratio
- P/ BV Ratio
- Price / Earnings Growth Ratio
- Price / Free Cash Flow
- Price / Cash EPS
3) Expected Fund Flow
4) Market Sentiment and outlook
Conclusion- Who Should Invest?
It is mainly meant for investors who have at least 5-8 years of the investment horizon. Belonging to Tata Mutual Fund house, there is no doubt on the management of the scheme as it has strong back support of the group which has given several top performing schemes to the industry. Comparing the fund with other popular balanced advantage funds, we will notice that the schemes from ABSL MF and ICICI Pru MF have delivered around 12%+ return in past five years. Thus, we can expect if the fund maintains its higher allocation in equities, then it will possibly deliver better returns to investors who have an interest in this category.
To invest in Tata Balanced Advantage Fund, visit Tata Balanced Advantage Fund Regular - Plan (G) right now!
| Scheme Name | Tata Balanced Advantage Fund |
|---|---|
| Fund Managers | Rahul Singh, Sonam Udasi, Sailesh Jain, Akhil Mittal |
| Type of Scheme | An open ended dynamic asset allocation fund |
| Scheme Objective | The investment objective of the Scheme is to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities and pure equity investments. |
| However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns. | |
| Scheme Benchmark | CRISIL Hybrid 35+65 - Aggressive Index |
| Asset Allocation | Equity and Equity related instruments and Equity Derivatives 65%-100% |
| Debt (including money market instruments, securitized debt & units of debt and liquid category schemes) & Cash 0-35% | |
| Liquidity | The Scheme will offer units for Repurchase and Resale at NAV based prices on every Business day on ongoing basis commencing not later than 5 Business days from the date of allotment of units under the Scheme post the NFO period. Under normal circumstances the AMC shall dispatch the redemption proceeds within 10 business days from date of receipt of request from the Unit holder. |
| Plans/Options | Regular Plan (For applications routed through Distributors): 1. Growth 2. Dividend Direct Plan (For applications not routed through Distributors): 1. Growth 2.Dividend Default Option If Growth or Dividend Option is not mentioned: Growth Default Sub-Option: Dividend Reinvestment option Dividend option has sub-options of Dividend Payout, Dividend Reinvestment & Dividend Sweep. The dividend payout for amount less than Rs 250/- will be compulsorily reinvested in the same sub-option at exdividend NAV. Please note that the Dividend shall be distributed at the discretion of the Trustees subject to availability of distributable surplus. |
| Entry & Exit Load | Entry Load: NIL |
| Exit Load: If redeemed on or before 1 year (365 days) from the date of allotment: 1% | |
| Minimum Application Amount | Rs.5000 (Plus in multiple of Rs.1 thereafter) |
| Minimum SIP Amount | Rs. 500 |
| Source:TATA Mutual Fund | |
For more details on Tata Balanced Advantage Fund or other schemes of the AMC, visit MySIPonline. We will keep you updated with the similar information and their performances.
.jpg)