Canara Robeco Mutual Fund has launched the Canara Robeco Balanced Advantage Fund, with a New Fund Offer (NFO) open from July 12 to July 26, 2024. The fund allocates at least 65% of its assets in stocks in order to take advantage of the equity taxes. The remaining portion is placed in debt and money market instruments for stability, its release said. It uses a patented three-factor methodology to advise asset allocation, which includes variables like "Trailing P/B," "Equity Risk Premium," and "Forward P/E."
According to Rajnish Narula, CEO of Canara Robeco Mutual Fund, "Canara Robeco Balanced Advantage Fund is designed to dynamically alter exposure to equities and debt, aiming for sustained capital growth and income generation. It provides investors with a method to moderate participation in market rallies while mitigating potential losses."
Head of Equities at Canara Robeco Mutual Fund Shridatta Bhandwaldar emphasized, "To maintain liquidity and stability, our approach blends cyclical and compounders in equities and focuses on government bonds and AAA-rated corporate papers in the debt segment."
Gaurav Goyal, National Head of Sales and Marketing at Canara Robeco Mutual Fund, highlighted the fund's special features: an Auto Switch facility, allowing investors to invest in select debt schemes during the NFO period with the entire amount switched to the NFO on the last day and a Smart STP facility for staggered investments through four equal investments.
The fund is managed by a group that includes Amit Kadam, Ennette Fernandes, Shridatta Bhandwaldar and Suman Prasad. It is benchmarked against the CRISIL Hybrid 50+50 - Moderate Index.
