JioBlackRock Mutual Fund files draft with Sebi for balanced advantage fund

JioBlackRock Mutual Fund filed a draft document with Sebi for a balanced advantage fund, an open ended dynamic asset allocation fund investing in debt and equity instruments only.

According to the draft filed with the market regulator, the investment objective of the scheme is to generate long term capital appreciation with income generation by investing in a dynamically managed portfolio of equity and debt instruments.

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The performance of the fund will be benchmarked against Nifty 50 Hybrid Composite Debt 50:50 Index (TRI) and will be managed by Tanvi Kacheria, Sahil Chaudhary, Virendra Kumar, Arun Ramachandran, Vikrant Mehta, and Siddharth Deb.

The scheme shall offer two plans viz. regular plan and direct plan. Each Plan will offer only Growth Option and that will be the default option. The minimum application amount for lumpsum investment will be Rs 500 and any amount thereafter. For SIP, the minimum application amount will be Rs 500 and in multiples of Re 1 thereafter with minimum six instalments.

The minimum amount for switch-in to the scheme will be Rs 500 and any amount thereafter and the minimum amount for additional purchase will be Rs 500 and any amount thereafter.

The fund will allocate 65-90% in equity and equity-related instruments and 10-35% in debt and money market instruments.

Investment strategies
The investment objective of the Scheme is to generate long term capital appreciation with income generation by investing in a dynamically managed portfolio of equity and debt instruments. This objective is pursued through an active investment strategy that employs a systematic approach to asset allocation between equities and fixed income, and to security selection for equity portfolio construction.

The systematic investment approach integrates the expertise of the Fund Managers and their research insights with signal research scores provided by entities of the BlackRock group.

The portfolio construction process is powered by BlackRock's technology platform - Aladdin, which has been licensed to JioBlackRock AMC. This process is augmented by an optimization process which leverages the composite research score along with other inputs from the investment team such as risk constraints, transaction cost, market liquidity, sector or stock constraints and such other inputs.

The fund will be suitable for investors seeking long-term capital appreciation with income generation and investment in a dynamically managed portfolio of equity and debt instruments.

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The principal invested in the fund will be at “very high risk” according to the riskometer of the scheme whereas the principal invested in the benchmark will be at “high risk”, according to the riskometer.

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