Canara Robeco Mutual Fund, India’s second-oldest asset manager, has introduced the Canara Robeco Balanced Advantage Fund, an open-ended dynamic asset allocation fund designed to capitalize on market gains while minimizing risks. The New Fund Offer (NFO) will be open from July 12 to July 26, 2024.
The fund’s allocation will be at least 65% in equities, ensuring equity taxation benefits for investors, with the remainder invested in debt and money market instruments. This aims to address the investor behavioral gap due to market volatility.CEO Rajnish Narula stated, “Our Balanced Advantage Fund will dynamically adjust equity and debt exposure, targeting long-term capital appreciation and income generation.”
Guided by a proprietary three-factor model—Trailing P/B, Equity Risk Premium, and Forward P/E—tested over 20 years, the fund seeks to eliminate investor biases. Head of Equities, Shridatta Bhandwaldar, noted that the model helps navigate various market conditions.Special features include the Auto Switch facility, allowing investors to invest in select debt schemes during the NFO period, and Smart STP for staggered investments. The fund is benchmarked against the CRISIL Hybrid 50+50 – Moderate Index and managed by Shridatta Bhandwaldar, Ennette Fernandes, Suman Prasad, and Amit Kadam.
