BNP Paribas Balanced Fund, as the name suggests, is an open-ended balanced scheme. It invests primarily in equity & equity-related securities and the rest in debt securities & money market instruments in order to generate income and capital appreciation. The product is suitable for investors who want wealth creation in the long term because the risk associated with the fund is moderately high.
Let us have a look over the fund break-up:
This fund allows investors to enter and exist as per their comfort. There is no restriction on redemption of money. However, one must adhere to the norms of short-term capital tax if redemption is made within a year. Especially, in the case of NFO units can be purchased and sold even after the NFO period gets over. The sale and purchase are done as per the declaration of NAV.
The balanced fund is designed for investors who are looking for safety and moderate capital appreciation. Under such criteria, the fund is set with a minimum and maximum mix of the stated asset class. Investors who have a dual objective of safety and income growth can invest in such kind of fund since the fund is a mix of equity and money market instrument.
Make sure that you are linking your investment with a particular long-term financial goal under the proper guidance of a financial adviser and it is also required to take suggestions from time to time if doing any investing in such kind of fund.
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New Fund Offer time Period
NFO opened on March 17, 2017, and will close on March 31, 2017. However, the scheme will re-open within 5 business days from the date of allotment.
The scheme seeks to generate income and capital appreciation by investing in a diversified portfolio of equity and equity-related instruments and fixed income instruments. However, there can be no assurance that the investment objectives of the scheme will be realized. The scheme does not guarantee/ indicate any returns.
Alternate asset allocation when very few opportunities are available or no opportunities are available, the asset allocation is expected to be as follows:
Debt instruments may include securitised debt up to 10% of the net assets. It may be noted that the AMC has to adhere to the asset allocation pattern indicated in the scheme Information Document under normal circumstances.
* Includes investments in derivatives (gross exposure shall not exceed 50% of the asset allocation stipulated above for the relevant instrument category).
Please note the following provisions with respect to applicability of NAV for the subscription / switch ins with an amount equal to or more than Rs. 2 lakh for receipt of the closing NAV of the same Business Day:
1. Valid applications for subscription / switch-ins is received before the applicable cut-off time, i.e. 3 p.m
2. Funds for the entire amount of subscription/switch-ins as per the application are credited to the bank account of the scheme before the cut-off time i.e. 3 p.m.
3. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the scheme.
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Minimum Application Amount
There is no upper limit on the amount for application.
The Trustee / AMC reserves the right to change the minimum amount for application and the additional amount for application from time to time in the scheme and these could be different under different plan(s) / option(s).
CRISIL Balanced Fund Index
Entry Load: Nil
Exit Load: 1.00%, if redeemed or switched-out up to 1 year from the date of allotment of units. Nil, if redeemed or switched-out after 1 year from the date of allotment of units.