Canara Robeco Mutual Fund has announced the launch of Canara Robeco Balanced Advantage Fund, an open-ended dynamic asset allocation fund, the asset management company said in a release.
Canara Robeco Mutual Fund, India’s second oldest asset manager, is aiming to generate alpha when markets are doing well and reduce downside risk in times of bad market periods, the AMC said.
The Canara Robeco Balanced Advantage Fund will be benchmarked against CRISIL Hybrid 50+50 – Moderate Index.
Shridatta Bhandwaldar, Ennette Fernandes, Suman Prasad and Amit Kadam are the fund managers for Canara Robeco Balanced Advantage Fund.
Canara Robeco Mutual Fund NFO
The New Fund Offer (NFO) will open on July 12 and close on July 26, 2024. The gross allocation of the fund will be 65% or more towards equities, which will ensure equity taxation for investors the release said. “Rest will be invested in debt and money market instruments. It also aims to address the investor behavioural gap due to market volatility.”
Also read: Quant Mutual Fund: Top 5 schemes with up to 75% returns in 1 year
Canara Robeco Balanced Advantage Fund to dynamically alter equities, debt exposure
“Canara Robeco Balanced Advantage Fund will dynamically alter the exposure to equities and debt aiming for long term capital appreciation with income generation. The fund may be suitable for mutual fund investors seeking a method for dynamically altering their exposure to equity. The fund may also be suitable for those investors who are trying to moderate their participation in market rallies while mitigating potential losses,” said Rajnish Narula, CEO, Canara Robeco Mutual Fund.
Canara Robeco Balanced Advantage Fund predominantly invest in government bonds
In its allocation to debt segment, the fund will predominantly invest in government bonds and AAA-rated corporate papers with an aim to maintain stability and liquidity. The debt portfolio will be managed dynamically to capture any mispricing across yield curves.