- Date : 28/07/2022
- Read: 3 mins
NFO of Mirae Asset Balanced Advantage Fund!
The year 2022 has been volatile for the stock markets. The Indian markets are down as well, in line with the global markets. But in the Indian context, investing in the equity markets has been a nice decision in the long run. In the long run, equities have always bounced back, and in a growing market like India, equities are the best asset class for the long term.
Mirae Asset Management, a financial services company based out of Seoul, South Korea, is well known in the Indian markets. Their mutual funds have performed well over the years. Now the company has come out with an open-ended NFO with the scheme name Mirae Asset Balanced Advantage Fund. Should you invest in this fund?
NFO of Mirae Asset Balanced Advantage Fund
The NFO started for subscription on 21st July and will send on 03rd August. The fund is an open-ended scheme, and the core strategy for the fund will be dynamic asset allocation based on the market situation. A New Fund Offer or an NFO is a process by which an AMC or an Asset Management Company offers the first subscription to the fund. The AMC collects money from the investors and then invests that money into equities or bonds, or other financial instruments as per the fund objective.
The fund managers of the fund will be Mahendra Jajoo and Harshad Borawake. The minimum initial investment is Rs 5000 and you can opt for the direct plan as well. The benchmark index for the fund will be the Nifty 50 Hybrid Composite Debt Index. After the NFO, the minimum investment in the fund will be Rs 1000.
The fund's objective is to maximize the returns on the upside and limit the downside damages. The objective will be achieved by following a dynamic asset allocation strategy. The fund will use complex financial products to achieve its objectives. The guarantee is none, but the profile of the company is good.
The fund will rely on fundamental analysis to assess equity valuations, and the net equity position will be allocated per the fund managers' judgement. The equity exposure will be done so as to meet the taxation legality for the equity returns, and the debt portion will be used to get guaranteed returns on investments. The volatility will be reduced by following the dynamic asset allocation strategy based on the fundamental analysis.
The Mirae Asset Balanced Advantage Fund looks like a nice NFO, and the investors can take some exposure to benefit from the dynamic asset allocation strategy. This strategy ensures lesser volatility and beneficial tax laws because of equity exposure.
Related: Dummies Guide to Mutual Funds
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.