Canara Robeco Mutual Fund has launched a new fund offering (NFO) – the Canara Robeco Balanced Advantage Fund. This dynamic asset allocation fund aims to provide long-term capital appreciation and income generation by investing in a mix of equity and debt instruments.
- Fund Name: Canara Robeco Balanced Advantage Fund
- NFO Period: July 12, 2024 to July 26, 2026
- Minimum Investment: ₹5,000 (lump sum)
The primary objective of the Canara Robeco Balanced Advantage Fund is to generate long-term capital appreciation and income by dynamically managing the asset allocation between equity and debt based on market conditions. The fund aims to optimise returns while managing risk.
The Canara Robeco Balanced Advantage Fund follows a dynamic asset allocation strategy:
1. Equity Allocation: The fund invests in equity and equity-related instruments to capitalise on growth opportunities. The equity exposure is adjusted based on market valuations and conditions.
2. Debt Allocation: The fund invests in debt and money market instruments to provide stability and reduce volatility. The debt exposure is increased when equity markets are overvalued.
3. Arbitrage Opportunities: The fund also seeks to exploit arbitrage opportunities to enhance returns.
- Equity and Equity-Related Instruments: 65-100%
- Debt and Money Market Instruments: 0-35%
- Arbitrage Opportunities: Utilised when beneficial
The Canara Robeco Balanced Advantage Fund is suitable for:
- Investors seeking a balanced investment approach with exposure to both equity and debt.
- Those looking for long-term capital appreciation with managed risk.
- Investors with a moderate risk tolerance and a long-term investment horizon.
1. Dynamic Allocation: The fund adjusts its equity and debt exposure based on market conditions, aiming to optimise returns while managing risk.
2. Diversification: Exposure to both equity and debt provides diversification, reducing overall portfolio risk.
3. Professional Management: Managed by experienced professionals who leverage market insights to guide asset allocation decisions.
1. Market Risk: Investments in equities and debt are subject to market volatility and fluctuations.
2. Dynamic Allocation Risk: The effectiveness of the fund's strategy depends on the fund manager’s ability to accurately assess market conditions and adjust allocations accordingly.
3. Interest Rate Risk: Changes in interest rates can affect the performance of the debt component of the fund.
The Canara Robeco Balanced Advantage Fund NFO offers a balanced approach to investing, aiming to provide long-term capital appreciation and income generation through dynamic asset allocation. By adjusting exposure between equity and debt based on market conditions, this mutual fund investment seeks to optimise returns while managing risk. As always, investors should consider their risk tolerance and investment goals before investing.
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