Five installments of at least 1000 thousand rupees will have to be made in a multiple of one rupee for monthly and quarterly SIP investment.
PGIM India Mutual Fund has announced the launch of ‘PGIM India Balanced Advantage Fund’. It will open for NFO subscription from 15 January 2021 and will close on 29 January 2021. The fund’s benchmark index is the CRISIL Hybrid 50 + 50 Moderate Index. The objective of this scheme is to increase the income of investors and its distribution among them.
Its objective will be met through asset allocation between equity and fixed income instruments in a very effective manner. For this, a strategy of equity derivative strategies, arbitrage opportunities and investment in equity will be adopted. This scheme will try to reduce volatility by diversifying investment in equity and fixed income assets. The fund will be managed by Mr. Anirudh Naha (for equity investment), Kumaresh Ramakrishnan (for debt and money market investment) and Anand Padmanabhan (for foreign investment).
Better strategy will bring profits
Ajit Menon, CEO of PGIM India Mutual Fund said, “The Balanced Advantage Fund category is a great investment solution for investors. It works on a model that automatically re-balances between equity and fixed income. This work is done in such a way that investors’ tax is saved. For this, investors do not even need to track it. The dynamic asset allocation model that the PGIM India Balanced Advantage Fund will adopt for this will treat the 15-year rolling PE average as a long-average PE to capture the changing trend in the equity market. As the market matures, we believe that this feature will keep this model relevant. This fund is suitable for investors who want to take moderate high risk.
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This fund has the ability to continuously provide long term risk adjusted returns. Also, allocation of investment between equity and fixed income instruments effectively will prove to be a great experience for investors. ”
Can invest from Rs 5000
The initial minimum investment in this scheme is Rs 5000 and then after that it will increase in multiple of Rs 1. The additional application amount is 1000 rupees and it will also increase in multiple of one rupee after this. The scheme will adopt the tax efficient dynamic asset allocation model as the fund is in the category of equity oriented scheme. The minimum allocation of 65 per cent in equity will be a mixture of directional equity and arbitrage.
Will work like an equity fund
The process of portfolio creation will also be like our existing equity funds. It will focus on quality. There will be three filters to enter this investment area. First- 7 out of 10 years operating cash flow will be positive. Second- corporate governance will be monitored and third will be debt to equity ratio <3. More than ten per cent of the units allocated will be 0.50 per cent exit load on any redemption / switch out (any redemption / switch out of date schemes can take place within 90 days of allocation without exit load). This condition will come when units are switched out or units are redeemed within 90 days of the allocation of units.
Five monthly installments of 1000 rupees
Five installments of at least 1000 thousand rupees thereafter for monthly and quarterly SIP in multiple of one rupee. The top up for monthly and quarterly SIPs will be in multiple of 100 rupees and one rupee. This will be added as a complementary feature in the Systematic Investment Plan and it will be available to investors. Group Life Insurance will be covered by Life Insurance Company selected by AMC. This will cover insurance for those investors who are eligible to avail this facility. This feature will be free. AMC will pay the premium for this life insurance cover.
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