Canara Robeco Mutual Fund, India’s second-oldest asset manager, has launched the Canara Robeco Balanced Advantage Fund, an open-ended dynamic asset allocation fund designed to generate returns during market upswings and mitigate risks during downturns. The New Fund Offer (NFO) will open on July 12 and close on July 26, 2024.
The fund aims for a gross allocation of at least 65% towards equities, ensuring equity taxation benefits for investors, while the remainder will be invested in debt and money market instruments. This structure addresses investor behavioral gaps due to market volatility.CEO Rajnish Narula stated, “The Canara Robeco Balanced Advantage Fund dynamically adjusts equity and debt exposure, making it suitable for those seeking long-term capital appreciation and income generation.”
The fund’s asset allocation is driven by a proprietary three-factor model using Trailing P/B, Equity Risk Premium, and Forward P/E, back-tested over 20 years. Head of Equities, Shridatta Bhandwaldar, emphasized that the model helps eliminate investor biases.Special features include the Auto Switch facility, allowing investments in select debt schemes during the NFO period, and the 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.
