Mirae Asset Balanced Advantage Fund NFO

Mirae Asset Balanced Advantage Fund – New Fund Offer Review

Updated on 17 Oct, 2023

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Mirae Mutual Fund to launch a new NFO in the Dynamic Asset Allocation Category : Mirae Asset Balanced Advantage Fund

Mirae Asset Mutual Fund is launching a new dynamic asset allocation fund, Mirae Asset Balanced Advantage Fund, that dynamically manages assets between equities and debt instruments.

The New Fund Offer (NFO) period for the Mirae Asset Balanced Advantage Fund is from July 21st 2022 to August 3rd 2022.

Objective

The Mirae Asset Balanced Advantage Fund’s investment objective is to capitalize on the potential upside of equities while attempting to limit the downside. The fund aims to do this by dynamically managing the portfolio through investment in equity & equity-related instruments and active use of debt, derivatives and money market instruments. However, there is no guarantee that the fund’s investment objective will be realized.

Fund Details

Mirae Asset Balanced Advantage Fund	Details
NFO Opening Date	July 21^st 2022
NFO Closing Date	August 3^rd 2022
Re-Opens for Subscription	August 12th 2022
Type of Fund	Open-ended equity scheme
Fund Manager	Mr Harshad Borawake (Equity Portion), Mr Mahendra Kumar Jajoo (Debt Portion)
Minimum Investment Amount	INR 5,000
Minimum Additional Purchase Amount	INR 1,000
Exit Load	0-1%
Suitability	Very High
Benchmark	Nifty 50 Hybrid Composite Debt 50:50 Index TRI
Plans and Options	Regular Plan & Direct Plan, Growth Option & Income Distribution cum Capital Withdrawal (IDCW) Option

Note:

All additional investment amounts should be multiple of INR 1/-

Exit Load:

If redeemed within 365 days from the date of allotment: 1% of the applicable NAV

If redeemed after 365 days from the date of allotment: NIL

Who Can Invest?

Mirae Asset Balanced Advantage Fund is an open, dynamic asset allocation mutual fund that invests in both equity and debt instruments. The fund employs a fundamental strategy to evaluate equity market valuations at any given time in order to determine its desired net equity position. Therefore, the fund seeks to provide investors with optimal participation in the equity market. The net equity and arbitrage position exposure assists the investor in achieving equity capital gains taxation at all times.

The debt exposure aims to provide the fund with an income strategy. The fund strives to deliver a risk-adjusted return while minimizing volatility through active management of its net equity position.

Since the portfolio is investing in equities, a high-risk tolerance level is required for investing in the scheme. Investors who aim to get exposure to equity and debt at the same time can consider Mirae Asset Balanced Advantage Fund.

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Fund Manager

Mr. Harshad Borawake

Mr Borawake has more than 17 years of experience across industries like Financials, Oil & Gas, Logistics and Aviation. He joined Mirae Mutual Fund in 2016 and is currently Head of Research and Fund Manager. He has strong experience in research and investment processes, Financials, Oil & Gas and the Economy.

Prior to joining Mirae, he was with Motilal Oswal Securities and Capmetrics & Risk Solutions. Mr Harshad holds a Bachelor’s in Engineering degree and also an MBA in Finance.

Mr. Mahendra Kumar Jajoo

Mr Mahendra Kumar Jajoo has more than 28 years of experience in the field of financial services, of which 14 years of experience in Fixed Income funds management. At the Mirae fund house, he is the Chief Investment Officer – Debt and is responsible for managing fixed income assets across all mutual fund products. Prior to joining Mirae, he was with MJ Investment Services, Pramerica Asset Managers Pvt. Ltd., Tata Asset Management Ltd., ABN AMRO and Asset Management Ltd. Furthermore, he is a CFA charter holder – CFA Institute, USA.

Asset Allocation

Following is the indicative asset allocation of the Mirae Asset Balanced Advantage Fund.

Types of Instruments	Indicative Allocation Minimum	Indicative Allocation Maximum	Risk Profile
Equity and equity-related instruments	0%	100%	High
Debt securities (including securitized debt), money market instruments (including Triparty REPO, Reverse Repo and equivalent)	0%	100%	Medium to High

Concluding Remarks

Mirae Asset Balanced Advantage Fund is an open-ended dynamic asset allocation fund that aims to invest dynamically across both equity and debt schemes. Investing across different asset classes will offer a different risk-return profile. And also offers relatively low correlation to each other in comparison to other investments within the same asset class. The fund manager will dynamically determine asset allocation between debt and equity depending on prevailing economic market and market conditions. The equity-debt mix at any point in time will be a function of various factors like equity valuations, interest rates, asset classes and risk management etc.

Also, the Scheme may periodically employ an internal proprietary algorithm to analyze the market and identify asset allocation opportunities.

Mirae Asset Balanced Advantage Fund is aimed at investors who wish to get exposure to both equity and debt schemes. Furthermore, it is considered to be an equity scheme, and a medium to long-term investment horizon is advisable. Moreover, since the Mirae Asset Balanced Advantage Fund does not guarantee returns, it is wise to monitor the investments closely.