NFO Alert: Canara Robeco Mutual Fund launches Canara Robeco Balanced Advantage Fund; all you need to know

Canara Robeco Mutual Fund announced the launch of the Canara Robeco Balanced Advantage Fund, an open-ended dynamic asset allocation fund suitable for investors seeking

• Long-term capital appreciation and income
• Investment in a dynamically managed portfolio of equity, equity-related instruments, debt instruments, and money market instruments.

The scheme opened for public subscription on July 12, 2024, and will close on July 26, 2024. The scheme re-opens for continuous sale and repurchase on August 09, 2024.

What kind of mutual fund scheme is this?

This is an open-ended dynamic asset allocation fund. The scheme endeavours to provide long-term capital appreciation and income by dynamically managing the portfolio through investment in equity & equity-related instruments and active use of debt, money market instruments, and derivatives.

“Canara Robeco Balanced Advantage Fund will dynamically alter the exposure to equities and debt aiming for long-term capital appreciation with income generation. The fund may be suitable for mutual fund investors seeking a method for dynamically altering their equity exposure. The fund may also be suitable for those investors who are trying to moderate their participation in market rallies while mitigating potential losses,” said Rajnish Narula, CEO, Canara Robeco Mutual Fund.

What is the main objective of investing in this fund?

The fund aims to generate long-term capital appreciation with income generation by dynamically investing in equity and equity-related instruments and debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realised.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹1000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Are there similar mutual funds in the market?

To date, many mutual fund houses have launched many such similar mutual funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

How will the scheme benchmark its performance?

CRISIL Hybrid 50+50 – Moderate Index is the benchmark for Canara Robeco Balanced Advantage Fund. Upon approval by the Board of Directors/Trustees, the scheme has currently opted for the aforementioned benchmark based on the scheme’s investment pattern/objective and the index composition. The investment manager reserves the right to update this benchmark to a more suitable index formulated by competent agencies. The AMC may provide its insights on returns and benchmark comparisons if needed.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:

• 1% – if redeemed/switched out above 12% of allotted units within 365 days from the date of allotment.
• Nil – if redeemed/switched out up to 12% of allotted units within 365 days from the date of allotment.
• Nil – if redeemed/switched out after 365 days from the date of allotment.

Who will manage this scheme?

Shridatta Bhandwaldar, Ennette Fernandes, Suman Prasad and Amit Kadam are the fund managers for the scheme.

Does the fund contain any inherent risk?

The scheme involves “High Risk” as per the details mentioned in theScheme Information Document and is best suited to investors willing to understand that their principal will be subject to high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.