Publish Date:
PGIM India Mutual Fund has launched a new open ended dynamic asset allocation fund - PGIM India Balanced Advantage Fund.
The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by dynamically managing the asset allocation between equity and fixed income using equity derivatives strategies, arbitrage opportunities and pure equity investments. The scheme seeks to reduce the volatility by diversifying the assets across equity and fixed income.
However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee/ indicate any returns.
Under normal circumstances, 65% to 100% of the funds portfolio will be invested in Equity & Equity related instruments. It can invest upto 35% of its assets in Debt & Money Market Instruments.
PGIM India Balanced Advantage Fund will allocate money to equity and fixed income asset classes based on the percentage allocation suggested by the Dynamic Advantage Asset Allocation Facility (DAAAF) model.
As per the scheme’s SID, DAAAF is a unique P/E based variation asset allocation facility, that automatically manages asset allocation across equity and debt in different market phases based on an in-house proprietary P/E based investment model.
DAAAF manages allocation across equity and debt based on the market valuations and P/E based model & executes three critical strategies.
Enter: When the equity market is undervalued i.e. Current P/E is significantly lower, it switches or increases allocation from the debt allocation to the equity allocation.
Exit: When the equity market is overvalued i.e. Current P/E is significantly higher, it switches or decreases allocation from the equity allocation to the debt allocation.
Re-enter: When valuations are reasonable vis-à-vis the historical averages, it switches / increases allocation to the equity allocation from the debt allocation.
PGIM India Balanced Advantage Fund’s performance will be benchmarked against CRISIL Hybrid 50+50 Moderate Index.
The fund will be managed by Mr Aniruddha Naha (Equity), Mr Kumaresh Ramakrishnan (Debt), and Mr Anandha Padmanabhan (Overseas).
The NFO opens for subscription on January 15, 2021 and closes on January 29, 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 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).