Tata Mutual Fund launches Balanced Advantage Fund

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NFO opens on January 09, 2019 and closes on January 23, 2019

Tata Mutual Fund announces the launch of Tata Balanced Advantage Fund, an open-ended dynamic asset allocation fund. The investment objective of the Scheme is to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities and pure equity investments.

An ideal investment scenario is to buy low and sell high. In reality however, investors have struggled to do so. Also investors get swayed by emotions and often observe that their investment returns are much lower than fund returns. Hence there is a need for investing in a fund with managed equity allocation.

Usually, various models are used for asset allocation like PE Based Model and PE + PB Model.

We have come up with an in-house model called the PE Plus Model which would factor in other market dynamics other than intrinsic value.

Tata Mutual Fund Model allows 10% variation to the basic PE based equity allocation; driven by:

• Correlation to select global markets (relevant to Indian equities)

• Implied volumes (to identify extremes – fear vs. complacency)

• Momentum indicators (price based indicators to avoid early entry/exits in a directional market)

Speaking on the launch Rahul Singh, CIO-equities, Tata Asset Management said that “the basic goal of the strategy is to be able to maneuver the investment allocation as per prevailing market conditions to make money work harder. Tata Balanced Advantage Fund would make use of various alternative models depending upon Macro, Fundamental factors and Fund Manager outlook to determine the unhedged equity allocation.”

The New Fund Offer (NFO) opens on January 09, 2019 and closes on January 23, 2019. The face value of the unit is Rs. 10 and the NFO application requires a minimum application amount of Rs. 5,000 and in multiple of Re.1/- thereafter. The scheme will re-open for continuous sale and repurchase not later than February 01, 2019.

Fund Facts:

Scheme Name TATA BALANCED ADVANTAGE FUND
NFO Dates  9th January 2019 to 23rd January 2019
Investment Objective The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities and pure equity investments.
Type Of Scheme An open ended dynamic asset allocation fund
Category of Scheme  Balanced Advantage
Fund Manager Equity-Rahul Singh & Sonam Udasi
Hedged Equity/Arbitrage –Sailesh Jain
Debt –Akhil Mittal
Benchmark CRISILHybrid 35+65 -Aggressive Index
Min. Investment Amount Rs. 5,000/-and in multiple of Re.1/-thereafter
Load Structure  Entry Load: N.A.; Exit Load: 1% of the applicable NAV, if redeemed on or before expiry of 365 days from the date of allotment.
Plans & Options Regular & Direct Plans with Growth & Dividend Options

About Tata Asset Management

Established in 1994, Tata Asset Management Ltd is the investment manager for Tata Mutual Fund. It is among the oldest and most trusted fund houses in India with an average monthly asset under management (AAUM) of Rs. 49,992 crore (as on December 31, 2018) and an investor base of over 18,00,000.

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