Mutual Fund News : NJ Mutual Fund Launches NJ Balanced Advantage Fund

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NJ Mutual Fund has launched its first scheme - NJ Balanced Advantage Fund.

It is an open-ended dynamic asset allocation fund.

The investment objective of the Scheme is to generate capital appreciation by dynamically allocating its assets between equity and specified debt securities. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Under normal circumstances, 0% to 100% of the funds portfolio will be invested in Equity & Equity related instruments including Derivatives. It can invest 0% to 100% of its assets in Specified Debt securities (TREPS (or any similar instrument), Government Repo / Reverse Repo (in Government Securities), Treasury bills, Government securities (Issued by both Central and State governments) and any other like instruments as specified by the Reserve Bank of India from time to time and approved by SEBI from time to time). The Scheme will not invest in foreign securities, securitised debt and equity linked debentures.

As per the scheme’s SID, the investment objective of NJ Balanced Advantage Fund is to generate capital appreciation by dynamically allocating its assets between equity and specified debt securities.

The scheme will allocate its assets and selects securities using a rule based active approach based on proprietary protocols. These protocols are derived based on analysis of various market, macroeconomic and fundamental factors described below.

Allocation to equity stocks will be decided on the basis of market and macroeconomic variables including equity market valuation, interest rates, Gsec yields and money supply. Equity stocks will be selected and weighted using factor-based rules that aim to achieve a mix of attributes considered supportive of long term performance within risk constraints.

A factor can be thought of as any attribute that is important in explaining the risk and / or return of a security.

Portfolios can be created on the basis of a single factor or a combination of two or more factors. The latter approach may assist in portfolio diversification and/or as a risk control mechanism.

The rule based active investment strategy eliminates all human intervention at the asset allocation and stock selection stage, preventing human bias and ensuring that the portfolio is constructed as intended by the proprietary protocol.

NJ Balanced Advantage Fund’s performance will be benchmarked against NIFTY 50 Hybrid Composite Debt 50:50 Index.

The fund will be managed by Mr Rishi Sharma.

The NFO opens for subscription on October 08, 2021 and closes on October 22, 2021. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Payout of Income Distribution cum Capital withdrawal Option (IDCW).