The Rs 1,458-crore Balanced Advantage Fund will remain an open-ended dynamic asset allocation fund, actively managing exposure between equity and fixed income, Anupam Tiwari, equity fund manager, fund house, told PTI on Friday.
Tiwari said the restoration is effective from October 1.
With this, the fund house aims to become a major player in the Balanced Advantage Fund category, he said, adding that the fund will now have more flexibility to invest in a particular asset class from a minimum limit of zero per cent to a maximum limit. 100% in both equity and fixed income.
There is also a provision to invest 0-10 percent in the units issued by the fund. REIT And ask over.
He added that asset allocation is guided by an in-house proprietary methodology that allows them to manage equity exposure in response to changes in underlying market conditions and thus gives better options to investors who have a longer time frame in mind. it occurs.
This dynamic nature makes it ideal Investment As a solution for all investors, the fund not only manages to navigate the market volatility better but also focuses on wealth creation over the long term, he said.
Explaining the rationale behind the move, Tewari said that the inherently volatile nature of equities can sometimes lead to price abnormalities in the near term, which affects the behavior of investors and makes investors aware of the market. This leads to buying at the top and selling at the bottom of the market, causing massive wastage of funds.
However, he added that this risk and huge losses can be mitigated if investors are given a product that has intelligent risk management at its core. Tiwari claimed that Axis Balanced Advantage Fund There is a product that offers a solution to this basic problem for investors.
The fund has given 27 per cent returns so far this year, 8.4 per cent last year and 9 per cent last year.
Chandresh Nigam, Managing Director and CEO, Axis MF said that Balanced Advantage Funds allow investors to hedge equity risk through a structured process that dynamically manages equity exposure. “Thus, they can help transform the investment experience by allowing investors to benefit from the long-term growth potential of equities while managing its risk.”
With 10-11 Equity Funds of over Rs 1.1 Lakh Crore AUM, Axis MF is the market leader among pure open-ended equity funds. This means that a little over 50 per cent of its total AUM of Rs 2.1 lakh crore is kept in equities, and the rest is spread between 4-5 hybrid funds, and debt and fixed income.