360 ONE Mutual Fund, formerly known as IIFL Mutual Fund, launched the 360 ONE Balanced Hybrid Fund on September 4, 2023. The open-ended balanced scheme will aim to strategically allocate investments across equity and debt instruments.
The new fund offer (NFO) that opened today will remain open for subscription till September 18, and then reopen again for continuous sale and repurchase from October 3, 2023 onwards. The minimum subscription amount during the NFO is Rs. 1,000, and in multiples of Rs. 100 thereafter.
Investment Objective
According to 360 ONE Mutual Fund, the scheme seeks to attain long-term capital appreciation and income by investing in a diverse portfolio of equity and debt instruments. The fund’s strategy is to allocate a higher weight to either debt or equity, which is more favourable under the current market and economic conditions.
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Benchmark
The benchmark for the 360 ONE Balanced Hybrid Fund is the Nifty 50 Hybrid Composite Debt 50:50 Index. This benchmark reflects a balanced approach, reflecting the fund’s strategy of maintaining an equilibrium between equity and debt investments.
Balanced Hybrid Fund
Under normal circumstances, the scheme will invest 40-60 per cent of its fund in equity or equity-related instruments across market capitalisation. The debt and money market instruments will constitute 40-60 per cent of the portfolio. Notably, this is the compulsory portfolio allocation laid down by the Securities and Exchange Board of India (Sebi) for this category of mutual funds.
Balanced hybrid funds are designed to strike a balance between growth and income by investing in both equity and debt. They possess the flexibility to adapt to changing market conditions by adjusting their equity and debt allocations, thus making them a viable option during periods of high market volatility.
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Both debt and equity tend to outperform each other on a relative risk-adjusted basis under different market conditions.
According to 360 ONE Mutual Fund, the scheme will allocate higher weight to the asset class that is relatively favourable under the prevailing market and economic conditions.
There is a 1 per cent exit load applicable if units are redeemed or switched out within 12 months from the date of allotment. Beyond this period, no exit load is applicable.
