Canara Robeco Mutual Fund, India’s second-oldest asset manager, has unveiled its latest offering, the Canara Robeco Balanced Advantage Fund. This open-ended dynamic asset allocation fund is designed to optimize returns during market upswings and safeguard investments during downturns. The New Fund Offer (NFO) will be available from July 12 to July 26, 2024.The fund plans to allocate a minimum of 65% to equities, ensuring equity taxation benefits for investors, while the rest will be invested in debt and money market instruments. This strategic allocation aims to bridge the investor behavioral gap caused by market volatility.
CEO Rajnish Narula remarked, “Our Balanced Advantage Fund will dynamically adjust its equity and debt exposure, targeting long-term capital appreciation and income generation. It’s an ideal choice for those seeking a balanced approach to market participation.”The fund’s asset allocation is guided by a proprietary three-factor model—Trailing P/B, Equity Risk Premium, and Forward P/E—back-tested over 20 years to eliminate investor biases. Head of Equities, Shridatta Bhandwaldar, emphasized the model’s robustness in varying market conditions.
The NFO offers unique features such as the Auto Switch facility, allowing investments in select debt schemes during the NFO period, and Smart STP for staggered investments. The fund, benchmarked against the CRISIL Hybrid 50+50 – Moderate Index, will be managed by a team of experts including Shridatta Bhandwaldar, Ennette Fernandes, Suman Prasad, and Amit Kadam. With a history dating back to 1987 and an AUM of approximately INR 101,000 crores as of June 30, 2024, Canara Robeco Mutual Fund continues to provide diversified and thematic investment options to investors.
